/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/140722.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, July 22, 2014, Vol. 18, No. 202 Headlines 231 FOURTH AVENUE: Judge Won't Revisit Order Lifting Bankr. Stay ALPHA NATURAL: Bank Debt Trades at 4% Off ALSOL CORP: Denied Jury Trial In Suit Over $3M Superfund Cleanup AMERICAN RESOURCE: Involuntary Chapter 7 Petition Dismissed ANESTHESIA HEALTHCARE: Can Hire Carl Marks as Consultant ASTON ESCROW: Moody's Assigns 'B3' Corporate Family Rating AVIS BUDGET: Moody's Raises Corporate Family Rating to 'Ba3' BAY INDUSTRIAL: Bankruptcy Stays "Attaway" Lawsuit BEAVERWORKS LLC: Voluntary Chapter 11 Case Summary BERNARD L. MADOFF: Facing Life In Prison, Aide Requests 8-10 Yrs BIOHEALTH COLLEGE: Voluntary Chapter 11 Case Summary BOART LONGYEAR: S&P Lowers CCR to 'CCC' on Eroding Liquidity BOBBY D. CURTIS: 5th Cir. Affirms Conviction BROOKSTONE HOLDINGS: Chapter 11 Plan Declared Effective BUFFET PARTNERS: Gets Approval to Settle Dispute With ARC BUFFET PARTNERS: Gets Approval to Settle Dispute With 505 Cordova CAESARS ENTERTAINMENT: Bank Debt Trades at 6% Off CERIDIAN LLC: S&P Rates New $1.15-Bil. Debt 'B-' CLIFFORD WOERNER: Reconsideration of Pro-Snax Standard Urged COLDWATER CREEK: Committee, Term Lenders Reach Settlement COLLEGE OF NEW ROCHELLE: Moody's Withdraws 'Ba1' Bonds Rating CORDON SELECTIONS: Case Summary & 20 Largest Unsecured Creditors CORINTHIAN COLLEGES: Court Order to Warn Students, Closings Sought CRUMBS BAKE SHOP: Seeks to Sell Assets to DIP Lender CRUMBS BAKE SHOP: Closes Stores, Rejects 21 Leases CRUMBS BAKE SHOP: Schedules Filing Date Extended to Aug. 8 CRUMBS BAKE SHOP: Court Issues Joint Administration Order DEMCO INC: Sec. 341 Creditors' Meeting Set for Nov. 11 DETROIT, MI: Signs Deal to Resolve DPOA's Plan Objections DOMUM LOCIS: Enters Into Lease Agreements with Managing Member DUBIN BROTHERS: Pension Trust Fund Wins Summary Judgment Bid EASTSIDE COMMERCIAL: 13th Bank Failure This Year ELLINGTON MUTUAL: A.M. Best Lowers Issuer Credit Rating to 'bb-' ENERGY FUTURE: Sidley, Kirkland Put Under Microscope EPWORTH VILLA: Voluntary Chapter 11 Case Summary ERIC HEYWOOD POOKRUM: Loses Appeal Over Rejection of Plan FELICIANO GONZALEZ: Chapter 22 Petition May Be Dismissed FELICIANO GONZALEZ: Can't Pay Bankr. Filing Fee in Installments FIDELITY & GUARANTY: S&P Affirms 'BB-' Counterparty Credit Rating FLORIDA GAMING: Morrison Brown to Prepare 2012 & 2013 Tax Returns FRANKLIN PIERCE: S&P Lowers Long-Term Rating to 'CCC'; Outlook Neg FREEDOM INDUSTRIES: West Va. Chemical Spill Claims Trickling In FREEDOM INDUSTRIES: Court OKs ARCADIS as Environmental Consultant FURNITURE BRANDS: Liquidation Plan Confirmed GINGKO ROSE: Case Summary & 8 Unsecured Creditors GLOBAL GEOPHYSICAL: Taps UHY LLP as Independent Auditor GSE ENVIRONMENTAL: Hires BDO USA as Independent Auditors GSE ENVIRONMENTAL: Expands Scope of Alvarez & Marsal's Employment HILLSHIRE BRANDS: Fitch Raises Issuer Default Rating From 'BB' HOWREY LLP: Suits v. Jones Day, Seyfarth Stay in Bankr. Court HRK HOLDINGS: Cushman & Wakefield Approved as Real Estate Broker IRISH BANK: Urges Court to Nix Late Bid for Tampa Mall JEH COMPANY: Withdraws Bid to Use Frost Bank's Cash Collateral JUNIPER GENERATION: Fitch Affirms BB+ Rating on $206MM Sec. Notes KEHE DISTRIBUTORS: S&P Lowers CCR to 'B' on Leveraged Acquisition KIDS BRANDS: Hires Lowenstein Sandler as Counsel KIOR INC: Biofuel Maker Misses Payments, Looks for Buyer KOSMOS ENERGY: Fitch Assigns 'B' Issuer Default Rating KUAKINI HEALTH: S&P Revises Outlook & Affirms 'BB+' Rating LAKEHEAD MARINE: Files for Bankruptcy in Ontario LATEX FOAM: Files Schedules of Assets and Liabilities LATEX FOAM: July 29 Hearing on Duff & Phelps as Investment Banker LATEX FOAM: Taps St. Onge Steward Johnston as IP Counsel LATEX FOAM: Zeisler & Zeisler Approved as General Legal Counsel LEHI ROLLER MILLS: Utah Judge Confirms Liquidating Plan LONGVIEW POWER: Slowed by First American Title Lawsuit M.V. JADRAN: "Captain John's" Ship to Be Sold July 31 in Toronto M&S HOSPITALITY: Case Summary & 8 Largest Unsecured Creditors MF GLOBAL: Vacation Time Claims Granted Class Status MICHIGAN COMMERCIAL: A.M. Best Lowers Then Withdraws B(fair) ICR MONARCH HOSPITALITY: Case Summary & 20 Top Unsecured Creditors NATROL INC: Sec. 341 Creditors' Meeting Rescheduled to July 29 NETBANK INC: Supreme Court Wants FDIC Papers in Tax Refund Case NEW ENGLAND COMPOUNDING: Settlement Prompts Victim Objections NORTHERN BEEF: Can Hire Karl Wagner as Chief Financial Officer OHCMC-OSWEGO LLC: Court Dismisses PNC Bank Suit ORBITAL SCIENCES: S&P Retains 'BB+' CCR on CreditWatch Negative ORMET CORP: Sale of Hannibal Smelter Okayed OXFORD FINE: Case Summary & 6 Largest Unsecured Creditors PSL-NORTH AMERICA: To Change Sale Plan Over Creditor Concerns PUERTO RICO: Ex-Boxing Champ Sues to Recover Losses from Bonds QIMONDA AG: Ch. 15 Courts Not Bound By Foreign IP Law QUIZNOS: Ex-Brass Want to Be Protected From Lawsuits REVEL AC: Can Proceed with Aug. 7 Auction ROGERS LEE BROWN: Southern Bank's Suit Dismissed RUE21 INC: Bank Debt Trades at 13.4% Off SEARS METHODIST: HUD Tries To Block Cash Use for Ch. 11 S.B. RESTAURANT: To Have Aug. 4 Auction SCYTHES INC: Files for Bankruptcy in Toronto STANDARD PACIFIC: Moody's Raises Corporate Family Rating to B1 SURGERY CENTER: S&P Assigns 'B' CCR Over Symbion Deal SURGERY CENTER: Moody's Affirms 'B3' CFR Over Symbion Deal SYNERGY LOGISTICS: Case Summary & Largest Unsecured Creditor TQ WELLNESS: Case Summary & 8 Largest Unsecured Creditors UNITED CUSTOM FABRICATING: UC Fab of Fla. Dragged in Union Suit WALTER ENERGY: Bank Debt Trades at 4.05% Off WHITING PETROLEUM: S&P Retains 'BB+' CCR & Positive Outlook WINDSOR PETROLEUM: Has Interim Authority to Use Cash Collateral WINDSOR PETROLEUM: Has Interim OK to Pay Managers & Vendors Claims * Ninth Circuit Allows Extraterritorial Reach of U.S. Law * Despite Exposure of Madoff Fraud, New Ponzi Schemes Emerge * Interventions Still Varies Following Bankruptcies, Fitch Says * Ace Cash Express to Pay $10MM over Debt-Collection Practices * Fischer Says Financial Stability Panel Needs More Power * Regulators Ready Money-Fund Rules * Small Second-Quarter Rise in Number of Low-Rated Junk Companies * Mike Wyse Joins Donlin, Recano & Company as Executive Director * Large Companies With Insolvent Balance Sheet ********* 231 FOURTH AVENUE: Judge Won't Revisit Order Lifting Bankr. Stay ---------------------------------------------------------------- Chief Bankruptcy Judge Carla E. Craig denied the request of 231 Fourth Avenue Lyceum, LLC, to reargue the Court's decision and order granting the motion of P.B. #7 LLC to lift the automatic stay in the Debtor's case. The Court said the Debtor's Motion for Reconsideration fails to provide grounds for relief under Federal Rule of Civil Procedure 60(b); and raises arguments already considered and rejected. 231 Fourth Avenue Lyceum, LLC, based in Brooklyn, filed for Chapter 11 bankruptcy (Bankr. E.D.N.Y. Case No. 13-42125) on April 11, 2013. Judge Carla E. Craig presides over the case. David M. Blum, Esq., serves as the Debtor's counsel. In its petition, the Debtor estimated $1 million to $10 million in both assets and debts. The petition was signed by Eric Richmond, president. Mr. Richmond, meanwhile, is a debtor in a pro se Chapter 13 bankruptcy proceeding (Bankr. E.D.N.Y. Case No. 14-41678), also before Judge Craig. 231 Fourth Avenue Lyceum's principal asset is real property located at 227-231 4th Avenue, Brooklyn, New York, which is encumbered by a mortgage held by P.B. The Debtor defaulted on the mortgage and P.B. obtained a judgment of foreclosure and sale on September 28, 2012. The amount of P.B.'s secured claim, calculated in accordance with the Foreclosure Judgment, is approximately $6.6 million. The Debtor filed for bankruptcy on the eve of the foreclosure sale. The Court on November 1, 2013, entered an order designating the Debtor as a single asset real estate Debtor and directing the Debtor to comply with the provisions of Sec. 362(d)(3) by filing "a plan of reorganization that has a reasonable possibility of being confirmed within a reasonable time", or by commencing monthly payments that "are in an amount equal to the then applicable nondefault contract rate of interest on the value of the creditor's interest in the real estate." On November 22, 2013, the Debtor filed a first amended chapter 11 plan and disclosure statement (its initial disclosure statement having been rejected as insufficient by order dated November 1, 2013), as well as a motion seeking approval of the first amended disclosure statement and plan, which motion was amended on November 25, 2013. The Debtor filed a second amended chapter 11 Plan, a second amended proposed disclosure statement and an affirmation in further support of the Disclosure Statement and Plan on December 18, 2013. P.B. filed an objection to the Debtor's first amended disclosure statement and filed a motion seeking relief from the stay. The United States Trustee also objected to the first amended disclosure statement. A hearing was held on December 18, 2013. On March 3, 2014, the Court entered a decision and order granting the Lift Stay Motion. The Decision found that the Debtor had failed to file a plan of reorganization that has a reasonable possibility of being confirmed within a reasonable time, as required by Sec. 362(d)(3), because no evidence was provided to show that the Debtor would be able to meet its obligations under the Plan, and because the record showed that the Debtor could not meet its obligations under the Plan. The Court rejected the Debtor's argument that the New York State Supreme Court, Kings County lacked jurisdiction to enter the Foreclosure Judgment. The Court also held that the Rooker-Feldman doctrine and res judicata prevented the Court from reviewing the validity of the Foreclosure Judgment. A copy of Judge Craig's July 17 Decision is available at http://is.gd/3EN2z6from Leagle.com. In Mr. Richmond's Chapter 13 case, Judge Craig granted P.B. #7 LLC relief from the automatic stay to allow it to exercise its rights and remedies under applicable law with respect to the Property. A copy of the decision also dated July 17, is available at http://is.gd/4hCNCtfrom Leagle.com. Counsel for P.B. #7 LLC is: Glenn P. Warmuth, Esq. STIM & WARMUTH, P.C. 2 Eighth Street Farmingville, NY 11738 Tel: 631-732-2000 Fax: 631-732-2662 ALPHA NATURAL: Bank Debt Trades at 4% Off ----------------------------------------- Participations in a syndicated loan under which Alpha Natural Resources is a borrower traded in the secondary market at 96.38 cents-on-the-dollar during the week ended Friday, July 11, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.08 percentage points from the previous week, The Journal relates. Alpha Natural Resources pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on May 31, 2020, and carries Moody's Ba2 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 205 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. ALSOL CORP: Denied Jury Trial In Suit Over $3M Superfund Cleanup ---------------------------------------------------------------- Law360 reported that a New Jersey federal judge ruled that the bankrupt Alsol Corp. and several affiliates can't challenge a $3 million U.S. Environmental Protection Agency lawsuit before a jury, saying no right to a jury trial exists under the law governing the cost of remediating a New Jersey Superfund site. According to the report, U.S. Magistrate Judge Cathy L. Waldor granted the government's motion to strike Alsol's request for a jury trial, backing the government's argument. The case is UNITED STATES OF AMERICA v. ALSOL CORPORATION et al, Case No. 2:13-cv-00380 (D.N.J.). Morristown, New Jersey-based Alsol Corporation filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 13-12689) on Feb. 11, 2013. The case is assigned to Judge Rosemary Gambardella. Alsol's petition disclosed $1 million to $10 million in assets and liabilities. The Debtor is represented by Morris S. Bauer, Esq. -- msbauer@nmmlaw.com -- at Norris McLaughlin & Marcus, in Bridgewater, New Jersey. AMERICAN RESOURCE: Involuntary Chapter 7 Petition Dismissed ----------------------------------------------------------- Minnesota Bankruptcy Judge Gregory F. Kishel dismissed the involuntary Chapter 7 bankruptcy petition (Bankr. D. Minn. Case No. 14-30262) commenced against American Resource & Energy, LLC. The judge said Qingdao ARE Wind Power Equipment Co., Ltd.; Bestee Resources Holdings, Limited.; and Charles Johnson did not qualify under 11 U.S.C. Sec. 303(b)(1) to file a petition for bankruptcy relief against ARE when they filed the petition that commenced the bankruptcy case on Jan. 24, 2014. He also held that the joinder of Polaris Industries, LLC to the petition would not satisfy the debt threshold of 11 U.S.C. Sec. 303(b)(2) to allow that party to maintain the petition even if putative debtor ARE had fewer than 12 creditors in all. "For want of qualified petitioning creditors holding claims in a sufficient amount against putative debtor ARE, the petition, and this case as a whole, are dismissed," Judge Kishel said. ARE was formed to function in a newer sector of the energy industry, electricity generation from wind power. St. Paul, Minn.-based ARE's contemplated business was the design and sale of wind turbine towers, foundations, and raising systems. The manufacture of this equipment, however, was to be done overseas. ARE transacted with persons and entities in the People's Republic of China for the fabrication; ARE designed the product and later sold it in markets outside China. The China-based parties to these transactions included two of the Petitioners, plus individuals associated with them. Dion Johnson is a principal in ARE. He had the status of its chief executive officer when the bankruptcy case was commenced. A copy of the Court's July 15, 2014 Order is available at http://is.gd/pLcyz1from Leagle.com. Joseph W. Dicker represents the Petitioners. He may be reached at: Joseph W Dicker, Esq. 1406 W Lake Street Minneapolis, MN 55408 Tel: (612) 827-5941 ARE is represented by: Marc M. Berg, Esq. J. SELMER LAW PA 500 Washington Avenue South, Suite 2010 Minneapolis, MN 55415 Tel: 612-338-6005 Fax: 612-338-4120 E-mail: mberg@jselmerlaw.com ANESTHESIA HEALTHCARE: Can Hire Carl Marks as Consultant -------------------------------------------------------- Anesthesia Healthcare Partners, Inc. sought and obtained permission from the U.S. Bankruptcy Court to employ Carl Marks Advisory Group, LLC to serve as the Debtors' financial and management consultant in connection with these chapter 11 cases, and the appointment of Carl Marks partner F. Duffield Meyercord as the Debtors' Chief Restructuring Officer, in each case nunc pro tunc as of June 5, 2014. F. Duffield Meyercord attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Carl Marks will, among other things, render these services: (i) assisting Debtors with preparing five-year financial models for the go-forward business. (ii) assisting Debtors with preparing by-site financial analysis to identify sites to sell and/or close; and (iii) assisting Debtors with preparing weekly cash flow Modeling. For the services to be provided by Carl Marks to the Debtors during the term of its engagement, and subject only to this Court's approval of this Application, the Debtors will pay to Carl Marks a Monthly Fee of $90,000.00, payable on the terms and schedule set forth in the Agreement, and shall also reimburse Carl Marks for its reasonable expenses incurred in connection with providing such services to the Debtors. The firm may be reached at: F Duffield Meyercord CARL MARKS ADVISORY GROUP LLC PO Box 1005 Bedminster, NJ 07921-1005 Tel: (908) 234-2373 Fax: (908) 781-6210 Anesthesia Healthcare Partners, Inc., filed a bare-bones Chapter 11 petition (Bankr. N.D. Ga. Case No. 14-59631) in Atlanta on May 15, 2014. The case is assigned to Judge Wendy L. Hagenau. The Debtor is represented by Theodore N. Stapleton, Esq., at Theodore N. Stapleton, P.C., in Atlanta. Sean Lynch of Suwannee, Georgia, the CEO of the company, owns 100% of the common stock. In its schedules, the Debtor listed $19,632,440 in total assets and $11,827,716 in total liabilities. ASTON ESCROW: Moody's Assigns 'B3' Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service assigned a B3 Corporate Family Rating and a B3-PD Probability of Default rating to Aston Escrow Corporation in connection with the acquisition of Transworld Systems, Inc. ("TSI", a carve-out of Expert Global Solutions, Inc.), by Platinum Equity Advisors ("Platinum"). Moody's also assigned a B3-LGD4 rating to a proposed, $440 million senior secured notes issuance, the proceeds from which, along with cash equity from Platinum, will be used to purchase TSI and pay related fees and expenses. At the closing of the transaction, Aston will merge with and into TSI, which will be the borrower post-merger. The rating outlook is stable. Ratings Rationale A handful of uncertainties surrounding Platinum's acquisition of TSI pressures the credit rating of what is otherwise a not overly aggressive purchase of a soundly profitable target company, albeit one that faces real business risks. Those risks include customer concentration, a stagnant revenue base that is susceptible to regulatory changes, and the lack of an operating track record as a standalone entity that would give investors comfort with TSI's post-carveout cost structure. The B3 rating allows for weaker than anticipated performance at TSI, whose top line has been spotty in the recent past, and which will now be overseen by a private equity firm with leeway to pursue shareholder-friendly financial policies. Platinum's modest equity contribution may not represent a large vote of confidence in the acquired business. The company is being sold at a notably low multiple, only about 6.0 times, leading us to wonder if operating weaknesses are more apparent from Platinum's vantage point than they are to debt investors. Still, Moody's recognize not only that overall debt to EBITDA, at about 5.5 times (including Moody's standard adjustment) is moderate, but also that Platinum has had considerable success in acquiring small divested businesses from larger multinational firms, often for low multiples, and wresting incremental value from them. Moreover, over the past three years TSI has generated healthy free cash flows, averaging $46 million annually, an amount that, relative to post-acquisition debt, is strong for a B3 rating. If the company can continue at or near the recent trajectory of free cash flow generation, TSI will build up a substantial cash balance. However, the combination of private-equity ownership and the absence of required debt amortization makes us skeptical about the prospects for deleveraging, even though Moody's expect the company will have ample capacity to do so. The stable outlook reflects Moody's expectations that increasing defaulted-student-loan volumes, rising absolute and out-of-pocket expenses for health care, and favorable trends generally for the outsourcing of collections services will drive revenue growth in the low single digits, although the landscape for both sectors is uncertain given the possible impacts from regulatory reform. Moody's could upgrade the ratings if TSI grows revenue at or better than the modest levels expected, such that leverage can be sustained at less than 5.0 times. Moody's could downgrade the ratings if revenues weaken abruptly, reflective, perhaps, of the loss of a significant customer, and if greater than anticipated operating expenses pressure profitability such that leverage and liquidity worsen materially. With Moody's-expected 2014 revenues of $335 million, TSI is an accounts-receivable management and debt-collections-services provider to the educational, healthcare, government, and legal industries. The privately held company is headquartered in Horsham, PA and conducts its operations primarily within the United States. Issuer: Aston Escrow Corporation Assignments: Corporate Family Rating, Assigned B3 Probability of Default Rating, Assigned B3-PD Senior Secured Notes due 2021, Assigned B3, LGD4 The principal methodology used in this rating was the Global Business and Consumer Services Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative Grade Non-Financial Companies in the US, Canada, and EMEA, published in June 2009. AVIS BUDGET: Moody's Raises Corporate Family Rating to 'Ba3' ------------------------------------------------------------ Moody's Investors Service upgraded all of the debt ratings of Avis Budget Group Inc. including: Corporate Family Rating (CFR) to Ba3 from B1; Probability of Default Rating to Ba3-PD from B1-PD; senior secured to Baa3 LGD2 from Ba1 LGD2; and senior unsecured to B1 LGD4 from B2 LGD5. The Speculative Grade Liquidity rating is affirmed at SGL-3. The rating outlook is stable. Ratings Rationale The upgrade reflects Moody's expectation that Avis will maintain an increasingly competitive business model in the global car rental industry. In addition, the company will benefit from favorable long-term industry fundamentals in the North American market. These factors should enable Avis to generate stronger and more sustainable operating performance. Finally, Moody's anticipate that Avis will manage future share repurchases in a prudent manner, sized based on its ability to generate free cash flow after the financing of its vehicle fleet, and that the company will maintain an adequate liquidity profile. Given Avis' significant reliance on debt to fund its annual fleet purchases, it is critical for the company to maintain an adequate liquidity profile. This profile is supported by a $1.65 billion committed revolving credit facility that matures in November 2015, approximately $4 billion in committed ABS funding programs with maturities beyond 2015; and approximately $841 million in cash (at March 2014). These resources, combined with ongoing access to the term ABS market, should enable Avis to comfortably fund its seasonal fleet buildup. Notwithstanding these operational and financial strengths, Avis will continue to face challenges and risks factors that include: leverage that remains high with year-end 2013 debt/EBITDA at 4.4x; a sizable amount of corporate debt ($3.4 billion at year-end 2013 which represents 32% of total funded debt of $10.7 billion), and ongoing cyclicality within the sector. In addition, despite Avis' adequate liquidity profile, its heavy reliance on capital market access to fund its fleet purchases is an ongoing risk factor. The stable rating outlook reflects Moody's expectation that Avis' sound competitive position in the car rental sector, combined with supportive industry fundamentals, will enable the company to sustain operating performance and credit metrics that are solidly supportive of the Ba3 CFR. There could be positive movement in the rating if Avis is successful in expanding its margins through cost reductions and revenue enhancing initiatives. Metrics that could point toward upward rating action include EBIT/interest sustained above 2x, retained cash flow to debt in the low- to mid- 20% range, or a likelihood that debt/EBITDA will remain in the mid- to high- 3.0x range. Additional considerations in any upward movement in Avis' rating will include: the ability of Avis and its peers to manage vehicle purchases and fleet size in line with demand; the degree to which the company maintains a healthy liquidity profile; a demonstration that share repurchases will be managed prudently; and progress in strengthening margins and return measures. The rating would most likely come under pressure as a result of a significant slowdown in the US or European economies, or aggressive vehicle over fleeting by the major rental companies. Credit metrics that could indicate downward rating pressure include EBIT/interest remaining near 1x or debt/EBITDA exceeding 4.5x. The principal methodology used in this rating was Global Equipment and Automobile Rental Industry published in December 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. BAY INDUSTRIAL: Bankruptcy Stays "Attaway" Lawsuit -------------------------------------------------- Proceedings in the lawsuit, JUSTIN ATTAWAY, et al., Plaintiffs, v. BAY INDUSTRIAL SAFETY SERVICES INC., et al., Defendants, Case No. 11-CV-803-SCW (S.D. Ill.), are stayed against Bay Industrial Services following its Chapter 11 bankruptcy filing. Magistrate Judge Stephen C. Williams said the stay will remain effective until the parties notify the Court that the bankruptcy proceedings have been resolved and that the stay may be lifted, or until this Court is notified that the claim may proceed with the approval of the bankruptcy court. The judge directed counsel for Bay Industrial Services to submit notices to the Court every October and April, beginning in October 2014, regarding that status of the bankruptcy proceeding, unless events warrant the filing of an earlier report. A copy of the Court's July 9, 2014 Order is available at http://is.gd/grwchhfrom Leagle.com. Based in Robinson, Illinois, Bay Industrial Safety Services Inc., filed for Chapter 11 bankruptcy (Bankr. S.D. Ill. Case No. 14- 60259) on July 3, 2014. Judge Laura K. Grandy presides over the bankruptcy case. Robert E. Eggmann, Esq., at Desai Eggmann Mason LLC, serves as the Debtor's counsel. In its petition, the Debtor listed total assets of $581,239 and total liabilities of $1.78 million. The petition was signed by Glenn Parker, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ilsb14-60259.pdf BEAVERWORKS LLC: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Beaverworks, LLC 10-14 Corey Street Melrose, MA 02176 Case No.: 14-13407 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: July 18, 2014 Court: United States Bankruptcy Court District of Massachusetts (Boston) Judge: Hon. William C. Hillman Debtor's Counsel: Laurel E. Bretta, Esq. BRETTA AND GRIMALDI, PA 77 Mystic Avenue Medford, MA 02155 Tel: 781-395-0090 Email: bglaw@lbretta.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Margaret H. Nuytkens, manager. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. BERNARD L. MADOFF: Facing Life In Prison, Aide Requests 8-10 Yrs ---------------------------------------------------------------- Law360 reported that Annette Bongiorno, a former close aide to Bernie Madoff who faces up to life in prison for her role in the epic Ponzi scheme, asked a New York federal judge late to issue a lighter sentence of between eight and 10 years. According to the report, Bongiorno, 65, was convicted in March along with four other former employees of Bernard L. Madoff Investment Securities LLC. Under U.S. sentencing guidelines, she could spend the rest of her life in jail, according to the court filing. Sentencing for the five defendants is scheduled for the last week of July, the report related. The case is U.S. v. O'Hara et al., case number 1:10-cr-00228, in the U.S. District Court for the Southern District of New York. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has paid about 58 percent of customer claims totaling $17.3 billion. The most recent distribution was in March 2013. Mr. Picard has collected about $9.35 billion, not including an additional $2.2 billion that was forfeit to the government and likewise will go to customers. Picard is holding almost $4.4 billion he can't distribute on account of outstanding appeals and disputes. The largest holdback, almost $2.8 billion, results from disputed claims. BIOHEALTH COLLEGE: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Biohealth College, Inc. dba Bryman College 2665 N. First Street, #102 San Jose, CA 95134-2033 Case No.: 14-53057 Chapter 11 Petition Date: July 18, 2014 Court: United States Bankruptcy Court Northern District of California (San Jose) Judge: Hon. Arthur S. Weissbrodt Debtor's Counsel: David A. Boone, Esq. LAW OFFICES OF DAVID A. BOONE 1611 The Alameda San Jose, CA 95126 Tel: (408) 291-6000 Email: ecfdavidboone@aol.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Sam Shirazi, CEO. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/canb14-53057.pdf BOART LONGYEAR: S&P Lowers CCR to 'CCC' on Eroding Liquidity ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its corporate credit rating on South Jordan, Utah-based Boart Longyear Ltd. to 'CCC' from 'CCC+'. The outlook is negative. At the same time, S&P lowered its issue level rating on subsidiary Boart Longyear Management Pty Ltd.'s secured notes to 'B-' from 'B' and its senior unsecured notes to 'CCC' from 'CCC+'. S&P maintained the '1' recovery rating on the secured notes, which indicates its expectation for very high (90% to 100%) recovery and the '4' recovery rating on the unsecured notes, which indicates S&P's expectation for average (30% to 50%) recovery in the event of a payment default. "The downgrade reflects our view that the company's capital structure is unsustainable in the current environment and potential exists for some form of restructuring in the next year," said Standard & Poor's credit analyst David Kuntz. "It also incorporates our view that its liquidity will continue to erode over the next year because of weak performance. We believe that covenant cushion is thin and that a violation of the company's financial performance covenants over the next year is a likely event." S&P could lower the rating if it believes that a default, distressed debt exchange, or some other form of capital restructuring appears to be inevitable within six months, absent unanticipated significantly favorable changes in the company's circumstances. S&P do not believe an upgrade is a likely scenario over the next year given its view of the company's unsustainable capital structure and eroding liquidity position. BOBBY D. CURTIS: 5th Cir. Affirms Conviction -------------------------------------------- Bobby D. Curtis was indicted for and pled guilty to concealment of bankruptcy estate assets valued at more than $942,000. After unsuccessfully moving to withdraw his guilty plea, Curtis filed a motion to vacate his conviction under 28 U.S.C. Sec. 2255, arguing that his court-appointed counsel rendered ineffective assistance. Curtis argues that Smith rendered ineffective assistance because he advised Curtis to plead guilty without reviewing discovery documents or really understanding what Curtis was pleading guilty to. A magistrate judge recommended granting relief but was overruled by the district court. A three-judge panel of the United States Court of Appeals, Fifth Circuit, affirmed in a July 15, 2014 Opinion, available at http://is.gd/APcEiLfrom Leagle.com. The case is, UNITED STATES OF AMERICA, Plaintiff-Appellee, v. BOBBY D. CURTIS, Defendant-Appellant, No. 12-30819 (5th Cir.). Curtis formed the company Gen-I-Tech, Inc. in early January 2002 for the purpose of installing computer and internet equipment in public schools Fand libraries pursuant to the Universal Service Administrative Company's School and Libraries Program, commonly referred to as the federal E-Rate Program. The E-Rate Program provides discounts to qualifying schools and libraries on eligible telecommunication or internet services by paying a percentage of the fee for such services. On May 24, 2002, Curtis filed for personal bankruptcy under Chapter 13, listing as a personal asset his stock in Gen-I-Tech, valued at $2000. On August 29, 2002, Curtis converted to Chapter 11 bankruptcy, followed by a conversion to Chapter 7 bankruptcy on February 12, 2003. The bankruptcy court discharged Curtis from bankruptcy on July 23, 2003. Rocky Willson, Esq., represented Curtis throughout his bankruptcy case. BROOKSTONE HOLDINGS: Chapter 11 Plan Declared Effective ------------------------------------------------------- Brookstone Holdings Corp., et al., notified the U.S. Bankruptcy Court for the District of Delaware that the effective date of their Second Modified Joint Chapter 11 Plan of Reorganization occurred on July 7, 2014. The Plan was confirmed on June 24. The May 7 version of the Plan provides, among other things, that "general unsecured claim fund" is defined as "$1,250,000 in Cash," and "GUC Excess Amount" to mean 15% of the increase in the aggregate value of the consideration under a winning bid, after payment of the break-up fee and expense reimbursement, subject to a cap of $1,500,000. The May 7 version, according to Bill Rochelle, the bankruptcy columnist for Bloomberg News, explained a settlement negotiated in April resolving opposition to plans for distributing sale proceeds. The May 7 version showed general unsecured creditors with a recovery from 11.4 percent to 30.5 percent, Mr. Rochelle said. The May 16 version of the Plan modified the definition of "GUC Excess Amount" to mean 15% of the increase in the effective date net distributable cash as a result of the winning bid, after payment of the break-up fee and expense reimbursement, subject to a cap of $1,500,000. About Brookstone Holdings Brookstone Holdings Corp. and its affiliated debtors on April 3, 2013, filed for relief under Chapter 11 (Bankr. D. Del. Lead Case No. 14-10752) with a plan to sell its business to another retailer. Specialty retailer Brookstone operated 242 retail stores across 40 states and Puerto Rico as of Feb. 1, 2014. Of those stores, 195 are generally located near "center court" in America's top retail centers and 47 are located in airports. Brookstone also operates an e-commerce business that includes the Brookstone catalog and http://www.Brookstone.com/ An affiliate of Spencer Spirit Holdings Inc., the parent of gift- shop chain Spencer's, has signed a deal to pay $147 million in exchange for 100% of the reorganized debtor's equity, absent higher and better offers from other parties. As of Dec. 31, 2013, Spencer operated 644 stores in 49 states and Canada. As of the bankruptcy filing, the Debtors owe more than $50 million on a senior secured prepetition credit facility ($34.1 million on a revolver, $12.3 million on a term loan and $4.7 million on account of letters of credit), and $137.3 million to holders of junior notes. The Debtors estimate that their unsecured debt is between $75 million and $85 million. The agreement with Spencer contemplates that Brookstone, headquartered in New Hampshire, will continue to operate its mall and airport stores, catalog, website, and wholesale channels, under the Brookstone brand with current employees remaining at their respective locations. The Debtors have tapped K&L Gates LLP and Landis Rath & Cobb LLP as attorneys, Deloitte Financial Advisory Services LLP as their financial advisors, Jefferies LLC as their investment banker, and Kurtzman Carson Consultants as claims agent. The DIP lenders are represented by Stroock & Stroock & Lavan LLP and Young Conaway Stargatt & Taylor LLP. BUFFET PARTNERS: Gets Approval to Settle Dispute With ARC --------------------------------------------------------- Buffet Partners, L.P. received court approval for a deal that would resolve its dispute with ARC CAFE001, LLC. Under the agreement, Buffet will assume its lease contract with ARC and assign it to Chatham Credit Management III LLC, secured lender and the purchaser of substantially all of the company's assets. ARC will receive payment of $36,985 as a condition to Buffet's assumption of the lease to "cure" its default under the lease. A full-text copy of the agreement is available without charge at http://is.gd/2XXZ8T The contract dated December 28, 2007 allowed Buffet to lease from ARC a real property located in Garland, Dallas County, Texas. In March, Buffet proposed to assume the lease in connection with the sale of its assets to Chatham, and proposed to pay ARC $139,263 to cure any defaults under the lease. ARC opposed the proposed amount, saying Buffet owed the company $192,531. About Buffet Partners Buffet Partners, L.P., owns and operates Furr's Fresh Buffet, a restaurant chain with 29 restaurants in Arizona, Arkansas, New Mexico, Oklahoma and Texas. With a 65+ year operating history, Furr's -- http://www.furrs.net/-- operates straight-line and scatter-bar buffet units that feature a variety of all-you-can-eat and home-cooked foods served at an affordable price. Buffet Partners was formed to purchase Furr's in September 2003. Headquartered in Plano, Texas, Buffet Partners and an affiliate sought Chapter 11 protection in Dallas (Bankr. N.D. Tex. Case No. Case No. 14-30699) on Feb. 4, 2014. Attorneys at Baker & McKenzie LLP serve as counsel to the Debtors. Bridgepoint Consulting is the financial advisor. Buffet Partners disclosed $33,281,729 in assets and $48,926,256 in liabilities as of the Chapter 11 filing. William T. Neary, U.S. Trustee for Region 6, appointed five creditors to serve in the Official Committee of Unsecured Creditors. Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP serves as its counsel. Mesirow Financial Consulting, LLC, serves as its financial advisors. The restaurant was founded in 1946 by Roy Furr, and expanded to approximately 60 locations as a family-owned business for over 35 years. In 1980, it was acquired by Kmart Corporation. Kmart ultimately sold Furr's in a leveraged buy-out which subsequently went public in 1986. Following a take-private transaction, the Company entered a period of decline due to its debt burden, culminating in a restructuring and reorganization under chapter 11 in 2003 in Dallas, Texas. BUFFET PARTNERS: Gets Approval to Settle Dispute With 505 Cordova ----------------------------------------------------------------- U.S. Bankruptcy Judge Harlin DeWayne Hale approved a deal that would resolve Buffet Partners, L.P.'s dispute with 505 Cordova, LLC over the assumption of their lease contract. Under the deal, Buffet will assume and assign the lease to Chatham Credit Management III LLC, secured lender and the purchaser of substantially all of the company's assets. Both sides also agreed that the "cure amount" that Buffet owes to Cordova as of May 31 is $36,692. A full-text copy of the agreement is available without charge at http://is.gd/CMU6w1 The contract allowed Buffet to lease from Cordova a commercial space in a shopping center located in Santa Fe, New Mexico. In March, Buffet proposed to assume the lease in connection with the sale of its assets to Chatham, and proposed to pay $18,440 to cure any defaults under the lease. Cordova opposed the proposed amount, saying it was owed $88,112. About Buffet Partners Buffet Partners, L.P., owns and operates Furr's Fresh Buffet, a restaurant chain with 29 restaurants in Arizona, Arkansas, New Mexico, Oklahoma and Texas. With a 65+ year operating history, Furr's -- http://www.furrs.net/-- operates straight-line and scatter-bar buffet units that feature a variety of all-you-can-eat and home-cooked foods served at an affordable price. Buffet Partners was formed to purchase Furr's in September 2003. Headquartered in Plano, Texas, Buffet Partners and an affiliate sought Chapter 11 protection in Dallas (Bankr. N.D. Tex. Case No. Case No. 14-30699) on Feb. 4, 2014. Attorneys at Baker & McKenzie LLP serve as counsel to the Debtors. Bridgepoint Consulting is the financial advisor. Buffet Partners disclosed $33,281,729 in assets and $48,926,256 in liabilities as of the Chapter 11 filing. William T. Neary, U.S. Trustee for Region 6, appointed five creditors to serve in the Official Committee of Unsecured Creditors. Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP serves as its counsel. Mesirow Financial Consulting, LLC, serves as its financial advisors. The restaurant was founded in 1946 by Roy Furr, and expanded to approximately 60 locations as a family-owned business for over 35 years. In 1980, it was acquired by Kmart Corporation. Kmart ultimately sold Furr's in a leveraged buy-out which subsequently went public in 1986. Following a take-private transaction, the Company entered a period of decline due to its debt burden, culminating in a restructuring and reorganization under chapter 11 in 2003 in Dallas, Texas. CAESARS ENTERTAINMENT: Bank Debt Trades at 6% Off ------------------------------------------------- Participations in a syndicated loan under which Caesars Entertainment Inc. is a borrower traded in the secondary market at 93.61 cents-on-the-dollar during the week ended Friday, July 11, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 0.42 percentage points from the previous week, The Journal relates. Caesars Entertainment Inc. pays 525 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 1, 2018, and carries Moody's B3 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 205 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. CERIDIAN LLC: S&P Rates New $1.15-Bil. Debt 'B-' ------------------------------------------------ Standard & Poor's Ratings Services said it affirmed its 'B-' corporate credit rating on Minneapolis-based Ceridian LLC. The outlook is stable. At the same time, S&P assigned a 'B-' issue rating with a recovery rating of '3' to Ceridian LLC's proposed $673 million of term loan B-1 tranche due 2017, co-issued with its subsidiary Comdata Inc. In addition, S&P assigned a 'B-' rating with a recovery rating of '3' to Ceridian LLC's proposed $702 million term loan B-2 tranche due 2020 and the proposed $125 million traveling Ceridian HCM revolver due as late as 2019 co-issued with its subsidiary Ceridian HCM Holding Inc. The '3' recovery rating indicates S&P's expectations of meaningful recovery (50%-70%) in the event of a payment default. S&P also affirmed all issue-level ratings on the company's existing debt. "Our 'B-' corporate credit rating on Ceridian reflects the company's 'fair' business risk profile based on its moderate position in a highly competitive market, and its 'highly leveraged' financial risk profile based on its high level of debt," said Standard & Poor's credit analyst Jacob Schlanger. S&P adjusted the 'b' anchor score downward one notch because of the company's high leverage compared to other 'B' rated peer companies. The stable rating outlook reflects S&P's expectation that improving economic conditions and the company's ongoing business transition will continue to have a positive impact on the company's revenue and margins. A highly leveraged financial position limits the possibility of an upgrade in the near to medium term, excluding the impact of a Comdata IPO. S&P could lower the rating if competitive pressures were to lead to a decline in margins and EBITDA so that the company would not have sufficient covenant headroom. Over the longer term, if the company is unable to address the 2017 maturity wall, S&P could lower the rating as well. CLIFFORD WOERNER: Reconsideration of Pro-Snax Standard Urged ------------------------------------------------------------ BARRON & NEWBURGER, P.C., Appellant, v. TEXAS SKYLINE, LIMITED; PECOS & 15TH, LIMITED; UNITED STATES TRUSTEE; SKYLINE INTERESTS, L.L.C., Appellees, No. 13-50075 (5th Cir.), concerns a bankruptcy court's order reducing the fees a debtor's counsel received under 11 U.S.C. Sec. 330. On May 13, 2010, on the eve of a major state court judgment against him, Clifford Woerner filed a voluntary petition under Chapter 11 of the Bankruptcy Code. Woerner filed a joint petition with his wife Gail Woerner, but Gail was subsequently dismissed from the case. The law firm of Barron & Newburger represented Woerner as Chapter 11 counsel. On April 20, 2011, the bankruptcy court converted the case to Chapter 7. Its services terminated, Barron & Newburger filed an application for fees in excess of $130,000. The bankruptcy court awarded the expenses in full, but only $19,409.00 in fees, an 85% reduction. The bankruptcy court cited In re Pro-Snax Distributors, Inc., 157 F.3d 414 (5th Cir. 1998), in its ruling on April 11, 2012. The bankruptcy court held that additional fees were unreasonable. The district court affirmed. Barron & Newburger appeals, contending that the bankruptcy court misapplied precedent and 11 U.S.C. Sec. 330 in reducing the fees awarded to it. "We affirm," a three-judge panel of the Fifth Circuit held in a ruling penned by Circuit Judge Edward C. Prado, and available at http://is.gd/ABgwKbfrom Leagle.com. Judge Prado also noted that, "Even though we find no error in the bankruptcy court's use of the Pro-Snax standard to resolve the attorney fee application in this case, I write separately to note that the Pro-Snax standard may be misguided. It appears to conflict with the language and legislative history of [Sec.] 330, diverges from the decisions of other circuits, and has sown confusion in our circuit." Section 330 gives a bankruptcy court discretion to determine the amount of reasonable compensation. But, according to Judge Prado, the statute also constrains that discretion by requiring the court to "tak[e] into account" a set of listed factors, including "whether the services were necessary to the administration of, or beneficial at the time at which the service was rendered." "We urge reconsideration of the standard in Pro-Snax by this court sitting en banc," Judge Prado said. Austin, Texas-based Clifford Joseph Woerner, aka C.J. Woerner and Woerner Interests, and Gail Suzanne Woerner, filed for Chapter 11 bankruptcy (Bankr. W.D. Tex. Case No. 10-11365) on May 13, 2010. Barbara M. Barron, Esq. -- bbarron@bnpclaw.com -- at Barron & Newburger, P.C., served as the Debtors' counsel. In the joint petition, the Woerners estimated $1 million to $10 million in assets and debts. A list of the Woerners' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txwb10-11365.pdf The case was later converted to Chapter 7 on April 20, 2011. COLDWATER CREEK: Committee, Term Lenders Reach Settlement --------------------------------------------------------- BankruptcyData reported that Coldwater Creek filed with the U.S. Bankruptcy Court a motion to approve compromise approving a global settlement agreement and release that follows a period of arms' length negotiations involving substantial concessions by parties including the Official Committee of Unsecured Creditors, the Term Loan Lenders, and the Debtors' officers and directors. According to BData, under the terms of the Settlement Agreement, the Term Loan Lenders' claims will be reduced by the amount of $4,400,000, and, provided that payment on account of those claims is made on or before July 21, 2014, the Term Loan Lenders will waive all unpaid interest that accrued from July 1, 2014 through and including the date of repayment. In the aggregate, the economic value of the Settlement Agreement to unsecured creditors of the Debtors' estates is estimated to be $5,362,914.55 above the amounts that would otherwise be available for distribution to them, BData said. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that the Committee opposed provisions in the reorganization plan to preclude lawsuits against company managers, secured lenders and owners. Mr. Rochelle also related that Coldwater has found buyers for leases at 21 of its stores, generating about $1.8 million for creditors. Successful bids for each location ranged from $20,000 to $346,000, Mr. Rochelle said, citing auction results filed with the bankruptcy court in Delaware July 9. Successful bidders include once-bankrupt retailer J. Jill Group Inc. and the retail arm of Forever 21 Inc., Mr. Rochelle added. About Coldwater Creek Coldwater Creek is a multi-channel retailer that offers its merchandise through retail stores across the country, its catalog and its e-commerce Web site, http://www.coldwatercreek.com/ Originally founded in Sandpoint, Idaho in 1984 as a direct, catalog-based marketer, Coldwater evolved into a multi-channel specialty retailer operating 334 premium retail stores, 31 factory outlet stores and seven day spa locations throughout the United States. As of the bankruptcy filing, the Debtors domestically employ a total of approximately 5,990 employees throughout their retail locations, corporate headquarters and distribution, design and call centers. Coldwater Creek Inc. and its debtor-affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10867) on April 11, 2014, to liquidate their assets. Coldwater Creek Inc. disclosed assets of $721,468,388 plus undetermined amount and liabilities of $425,475,739 plus undetermined amount. Affiliate Coldwater Creek U.S. Inc. estimated $100 million to $500 million in assets and liabilities. The Debtors have drawn $37.5 million and have approximately $10 million in letters of credit outstanding under a senior secured credit facility (ABL facility) provided by lenders led by Wells Fargo Bank, National Association, as agent. The Debtors also owe $96 million, which includes accrued interest and approximately $23 million representing a prepayment premium payable, under a term loan from lenders led by CC Holding Agency Corporation, as agent. Aside from the funded debt, the Debtors have accumulated a significant amount of accrued and unpaid trade and other unsecured debt in the normal course of their business. The Debtors have tapped Young Conaway Stargatt & Taylor, LLP, and Shearman & Sterling LLP as attorneys, Perella Weinberg Partners LP as financial advisor, Alvarez & Marsal as restructuring advisor, and Prime Clerk LLC as claims and noticing agent. The U.S. Trustee for Region Three named seven creditors to serve on the official committee of unsecured creditors. Lowenstein Sandler LLP represent the Committee. COLLEGE OF NEW ROCHELLE: Moody's Withdraws 'Ba1' Bonds Rating ------------------------------------------------------------- Moody's Investors Service withdraws the College of New Rochelle's Ba1 underlying rating on the Civic Facility Revenue Bonds Series 1999 and Revenue Bonds Series 2008. The rating action affects $57 million of debt. The Series 1999 bonds were issued through the New Rochelle Industrial Development Agency and the Series 2008 bonds were issued through the Dormitory Authority of the State of New York, NY. The enhanced A3/VMIG 2 rating on the Dormitory Authority of the State of New York, NY, Revenue Bonds (The College of New Rochelle Project) Series 2008 is unaffected by the action because it is based on a direct pay letter of credit from Citizen's Bank, N.A. (rated A3 negative; P-2). Summary Rating Rationale The rating withdrawal reflects the College's transition to serving a different population of primarily adult learners for which there are few comparables. Moody's has withdrawn the rating because it believes it has insufficient or otherwise inadequate information to support the maintenance of the rating. CORDON SELECTIONS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Cordon Selections Inc 4136 First Ave S Seattle, WA 98134 Case No.: 14-15445 Chapter 11 Petition Date: July 18, 2014 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Hon. Timothy W. Dore Debtor's Counsel: John R Rizzardi, Esq. CAIRNCROSS & HEMPELMANN, P.S. 524 2nd Ave Ste 500 Seattle, WA 98104-2323 Tel: 206-254-4444 Email: jrizzardi@cairncross.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Kenneth C. Avedisian, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/wawb14-15445.pdf CORINTHIAN COLLEGES: Court Order to Warn Students, Closings Sought ------------------------------------------------------------------ Karen Gullo, writing for Bloomberg News, reported that Corinthian Colleges Inc., the for-profit owner of career schools that will sell or shut them in the biggest collapse in U.S. higher education, may be ordered to warn students of its financial woes. According to the report, California Attorney General Kamala Harris filed a lawsuit seeking to require disclosures in the company's ads and on its websites. The report related that Mr. Harris accuses Corinthian of misrepresenting its job placement rates, advertising non-existent programs and using unlawful debt collection practices on student loans. She said the Santa Ana, California-based company also fails to tell consumers it's been suspended from enrolling veterans and is at substantial risk of financial collapse, the report further related. The case is People of the State of California v. Heald Colleges LLC, CGC-13-534793, California Superior Court (San Francisco). CRUMBS BAKE SHOP: Seeks to Sell Assets to DIP Lender ---------------------------------------------------- Crumbs Bake Shop, Inc., et al., have entered into an asset purchase agreement with Lemonis Fischer Acquisition Company, LLC, the Debtors' DIP Lender. LFAC will credit bid in exchange for the Debtors' assets, and assume certain liabilities, cure costs that need to be paid arising from assumed contracts, unpaid administrative expenses in an amount up to $150,000, and any transfer taxes. The sale of the Debtors' assets will be subject to competing bids. If bidding procedures are approved by Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey, an eligible bidder must submit a competiting bid by Aug. 19, so that if more than one bid, other than the stalking horse bid, is received, an auction will follow on Aug. 21, at the offices of Cole, Schotz, Meisel, Forman & Leonard, P.A., in Hackensack, New Jersey. The competiting bids must provide a purchase price greater than the minimum cash component of $6,514,245, plus a minimum overbid amount of $445,427, which represents (a) a reimbursement of actual, reasonable and necessary expenses of the Proposed Purchaser in the amount of $150,000, (b) a break-up fee in favor of the Proposed Purchaser in the amount of 3% of the cash component of the Purchase Price, and (c) an overbid in the amount of $100,000. The Debtors propose that the Court convene a hearing on Aug. 27 to consider approval of the sale of the assets to the successful bidder. Crumbs Bake Shop, Inc., and 22 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. N.J. Lead Case No. 14- 24287) on July 11, 2014. John D. Ireland signed the petitions as chief financial officer. Crumbs Bake Shop estimated assets of $10 million to $50 million and the same range of liabilities. Cole, Schotz, Meisel, Forman & Leonard, P.A., acts as the Debtors' counsel. Prime Clerk LLC is the Debtors' claims and noticing agent. Judge Michael B. Kaplan oversees the jointly administered cases. CRUMBS BAKE SHOP: Closes Stores, Rejects 21 Leases -------------------------------------------------- Crumbs Bake Shop, Inc., et al., obtained authority from Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey to reject 21 leases as of the later of (i) to the Petition Date and (ii) the date upon which the premises have been surrendered to the landlord, but in no event later than July 23, 2014. The leases are for properties located at: * Burlington Mall, in Burlington, Massachusetts, * Natick Mall, in Natick, Massachusetts, * Pheasant Lane Mall, in Nashua, New Hampshire, * South Shore Plaza, in Braintree, Massachusetts, * Mall at Rockingham Park, in Salem, New Hampshire, * Northshore Mall, in Peabody, Massachusetts, * Providence Place, in Providence, Rhode Island, * Danbury Fair Mall, in Danbury, Connecticut, * Suburban Plaza, in Ardmore, Pennsylvania, * Deptford Mall, in Deptford, New Jersey, * Freehold Raceway Mall, in Freehold, New Jersey, * King of Prussia, in Pennsylvania, * Christiana Mall, in Newark, New Jersey, * Columbia Mall, in Columbia, Maryland, * Cherry Hill, Mall, in Cherry Hill, New Jersey, * Park City Center, in Lancaster, Pennsylvania, * Towson Town Center, in Towson, Maryland, * White Marsh Mall, in Baltimore, Maryland, * Garden State Plaza, in Paramus, New Jersey, * Rockaway Mall, in Rockaway, New Jersey, and * Palisades Center, in West Nyack, New York. Crumbs Bake Shop, Inc., and 22 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. N.J. Lead Case No. 14- 24287) on July 11, 2014. John D. Ireland signed the petitions as chief financial officer. Crumbs Bake Shop estimated assets of $10 million to $50 million and the same range of liabilities. Cole, Schotz, Meisel, Forman & Leonard, P.A., acts as the Debtors' counsel. Prime Clerk LLC is the Debtors' claims and noticing agent. Judge Michael B. Kaplan oversees the jointly administered cases. CRUMBS BAKE SHOP: Schedules Filing Date Extended to Aug. 8 ---------------------------------------------------------- Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey Crumbs extended until Aug. 8, 2014, the time within which Bake Shop, Inc., et al., must file their schedules of assets and liabilities and statements of financial affairs. Crumbs Bake Shop, Inc., and 22 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. N.J. Lead Case No. 14- 24287) on July 11, 2014. John D. Ireland signed the petitions as chief financial officer. Crumbs Bake Shop estimated assets of $10 million to $50 million and the same range of liabilities. Cole, Schotz, Meisel, Forman & Leonard, P.A., acts as the Debtors' counsel. Prime Clerk LLC is the Debtors' claims and noticing agent. Judge Michael B. Kaplan oversees the jointly administered cases. CRUMBS BAKE SHOP: Court Issues Joint Administration Order --------------------------------------------------------- Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey issued an order directing the joint administration and procedural consolidation of the Chapter 11 cases of Crumbs Bake Shop, Inc., et al., under the lead case Case No. 14-24287. Crumbs Bake Shop, Inc., and 22 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. N.J. Lead Case No. 14- 24287) on July 11, 2014. John D. Ireland signed the petitions as chief financial officer. Crumbs Bake Shop estimated assets of $10 million to $50 million and the same range of liabilities. Cole, Schotz, Meisel, Forman & Leonard, P.A., acts as the Debtors' counsel. Prime Clerk LLC is the Debtors' claims and noticing agent. Judge Michael B. Kaplan oversees the jointly administered cases. DEMCO INC: Sec. 341 Creditors' Meeting Set for Nov. 11 ------------------------------------------------------ The U.S. Trustee Joseph W. Allen will convene a meeting of creditors pursuant to 11 U.S.C. 341(a) in the Chapter 11 case of Demco, Inc., aka Decommissioning & Environmental Management Company, on Nov. 11, 2012, at 2:00 p.m. The meeting will be held at Buffalo UST - Olympic Towers. 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 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. The Committee retained Amigone, Sanchez & Mattrey, LLP as its counsel. First Niagara Bank, the cash collateral lender, is represented by William F. Savino, Esq., at Damon Morey. DETROIT, MI: Signs Deal to Resolve DPOA's Plan Objections --------------------------------------------------------- A judge overseeing Detroit's bankruptcy case approved a deal that would resolve its dispute with the Detroit Police Officers Association. U.S. Bankruptcy Judge Steven Rhodes on July 10 signed an order approving the deal under which the police union agreed to drop its objections to the city's debt-cutting plan and vote in favor of the plan. The DPOA can re-file its objections if the union and the city leaders fail to ratify a collective bargaining agreement by July 25. In case the police union casts its ballots on time but no collective bargaining agreement is ratified, those ballots won't be counted, according to the deal. A full-text copy of the agreement is available without charge at http://is.gd/k9bdmt Separately, Judge Rhodes approved another agreement between Detroit and Michigan Attorney General Bill Schuette. The agreement requires the attorney general to file and serve his statement with respect to the plan and Michigan's pension clause no later than July 22 if either Class 10 or 11 votes to reject the plan. Plan Objections In a related development, a group led by a certain Carl Williams objected to the confirmation of Detroit's debt-cutting plan, saying the bankruptcy court "lacks jurisdiction." The group also questioned the filing of the Chapter 9 petition, saying it doesn't have the approval of either the city or its creditors. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency financial manager, signed the petition filed in July last year. The filing was authorized by Michigan Governor Rick Snyder after determining that the financial emergency in Detroit "cannot be successfully addressed" outside of a Chapter 9 filing Judge Rhodes will hold a hearing on July 24 to consider confirmation of the plan. The confirmation hearing may be continued from time to time, without further notice. 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. DOMUM LOCIS: Enters Into Lease Agreements with Managing Member -------------------------------------------------------------- Domum Locis LLC seeks authority from the U.S. Bankruptcy Court Central District of California, Los Angeles Division, to enter into lease agreements with Michael J. Kilroy, the managing member of the Debtor, for the residential real properties located at 1308-1312 N. Flores Street and 8313-A-8319A Fountain Ave., in West Hollywood, California, and at 424 W. Vista Chino, in Palm Springs, California. The Debtor says entry into the lease agreements is good business judgment because the proposed rent is equal to or higher than the fair market rate as evidenced by the rental rates on the comparable properties and will bring additional annual income of $163,900 into the Debtor's estate. To provide additional protection to the estate, Mr. Kilroy agrees that if during the term of the lease, any creditor or party-in-interest can identify a tenant who is ready, willing and able to enter into a lease agreement for the North Flores and Vista Chino Properties and pay a higher monthly rental than the rate under the lease agreements, then the Debtor will promptly file a motion seeking approval of the new lease and Mr. Kilroy will either (i) have the right to match or increase the proposed new monthly rent amount, or (ii) be required to vacate the properties within 60 days of the Court order approving the new lease agreements. Domum Locis LLC filed a Chapter 11 bankruptcy petition (Bankr. C.D. Calif. Case No. 14-23301) on July 11, 2014. Michael J. Kilroy signed the petition as managing member. The Debtor estimated assets and liabilities of at least $10 million. Cypress LLP serves as the Debtor's counsel. Judge Robert N. Kwan presides over the case. DUBIN BROTHERS: Pension Trust Fund Wins Summary Judgment Bid ------------------------------------------------------------ WILLIAM J. EINHORN, Administrator of the Teamsters Pension Trust Fund of Philadelphia and Vicinity, Plaintiff, v. DUBIN BROTHERS LUMBER CO., INC., Defendant, CIVIL ACTION NO. 12-6814 (JBS/JS) (D.N.J. November 2, 2012), seeks to collect amounts due pursuant to Sections 502(g)(2) and 4301(e) of the Employee Retirement Income Security Act of 1974, for withdrawal liability in a total of $209,956.78, as well as amounts due pursuant to a May 18, 2011 Settlement Agreement. The primary issues presented are whether withdrawal liability under ERISA is properly discharged under a Chapter 11 bankruptcy filed seven years before an employer withdraws completely from the fund, and whether an employer's failure to challenge the amount or existence of withdrawal liability through arbitration precludes the employer from arguing in a civil action to collect withdrawal liability that a portion of that liability was discharged through bankruptcy. Mr. Einhorn has been the Administrator of the Teamsters Pension Trust Fund of Philadelphia and Vicinity. The Fund is a multiemployer pension plan and an employee pension benefit plan maintained to provide retirement and related benefits. Mr. Einhorn argues that he is entitled to summary judgment as to amounts owed by Dubin Brothers to the Fund pursuant to a 2011 settlement agreement between the parties, as well as to amounts owed as the result of withdrawal liability under Sections 502(g)(2) and 4301(e) of ERISA. The Defendant opposed. In a July 16 Opinion available at http://is.gd/0REKlGfrom Leagle.com, Chief District Judge Jerome B. Simandle in New Jersey granted Plaintiff's motion for summary judgment. He said Plaintiff's motion is granted to the extent it seeks from Defendant the withdrawal liability as assessed in the letter dated April 18, 2012 in the amount of $209,956.78 and to the extent it seeks unpaid retroactive payments under the Settlement Agreement, in the amount of $4,218.97. The Court will also award Plaintiff $12,415.15 in interest on Defendant's 2011 withdrawal liability and liquidated damages in the amount of $41,991.36, plus reasonable attorney's fees and costs to which Plaintiff is entitled under 29 U.S.C. Sec. 1132(g)(2). Attorney for Plaintiff William J. Einhorn, Administrator of the Teamsters Pension Trust Fund of Philadelphia and Vicinity, is: Matthew D. Areman, Esq. MARKOWITZ & RICHMAN 123 S. Broad Street, Suite 2020 Philadelphia, PA 19109 Tel: 267-528-0121 Toll Free: 800-590-4561 Fax: 215-790-0668 Attorney for Defendant Dubin Brothers Lumber Co., Inc., is: Liam Y. Braber, Esq. JACOBY DONNER, PC East Gate Center 309 Fellowship Road, Suite 200 Mt. Laurel, NJ 08054 Tel: 609-278-2500 Fax: 609-278-0505 E-mail: lbraber@jacobydonner.com Dubin Brothers Lumber Co., Inc., filed a voluntary Chapter 11 petition (Bankr. D.N.J. Case No. 02-14096) on April 23, 2002. The Bankruptcy Court entered an Order Confirming Chapter 11 Plan on February 5, 2004. EASTSIDE COMMERCIAL: 13th Bank Failure This Year ------------------------------------------------ Eastside Commercial Bank from Conyers, Georgia, was taken over by regulators on July 18, becoming the 13th bank to fail this year, Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported. The failed bank had deposits of $161.6 million and will cost the Federal Deposit Insurance Corp. an estimated $33.9 million, the report related. ELLINGTON MUTUAL: A.M. Best Lowers Issuer Credit Rating to 'bb-' ---------------------------------------------------------------- A.M. Best Co. has downgraded the financial strength rating to B- (Fair) from B (Fair) and the issuer credit rating to "bb-" from "bb" of Ellington Mutual Insurance Company (EMIC) (Hortonville, WI). The outlook for both ratings remains negative. Concurrently, A.M. Best has withdrawn the ratings due to management's request to no longer participate in A.M. Best's interactive rating process. These rating actions are based on A.M. Best's concerns regarding EMIC's overall enterprise risk management (ERM), as well as its five-year trend of underwriting and operating losses, overall pricing adequacy, declining risk-adjusted capitalization and policyholders' surplus. Furthermore, the ratings reflect its dependence on one reinsurer, increased common stock investment leverage, concentrated business profile that has exposed the company to frequent and severe wind and hail events and management's inability to reverse operating loss trends in the near term. Despite these negative attributes, EMIC has adequate risk-adjusted capitalization, a history of adequate loss-reserving practices, long-standing agency relationships and an historic presence writing property business in underserved rural areas of central Wisconsin. ENERGY FUTURE: Sidley, Kirkland Put Under Microscope ---------------------------------------------------- Law360 reported that the trustee for second-lien noteholders owed $1.6 billion in the Energy Future Holdings Corp. bankruptcy is pressing ahead with plans to scrutinize the debtors' counsel Kirkland & Ellis LLP and Sidley Austin LLP over any past ties with the equity holders that bought out the energy giant in 2007, according to court papers. The report related that a pair of amended subpoena notices indicate that the noteholders' trustee Wilmington Savings Fund Society FSB intends to depose Kirkland and Sidley representatives in New York on July 22. About Energy Future Holdings fka TXU Corp. Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80 percent-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10979) after reaching a deal with some key financial stakeholders to keep its businesses operating while reducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). The Debtors are seeking to have their cases jointly administered for procedural purposes. As of Dec. 31, 2013, EFH Corp. reported total assets of $36.4 billion in book value and total liabilities of $49.7 billion. The Debtors have $42 billion of funded indebtedness. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee represents the interests of the unsecured creditors of ONLY of Energy Future Competitive Holdings Company LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings Company LLC; and EFH Corporate Services Company, and of no other debtors. The Committee has selected Morrison & Foerster LLP and Polsinelli PC for representation in this high-profile energy restructuring. The lawyers working on the case are James M. Peck, Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K. Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at Polsinelli PC. EPWORTH VILLA: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Central Oklahoma United Methodist Retirement Facility, Inc. dba Epworth Villa 14901 N. Pennsylvania Ave. Oklahoma City, OK 73134 Case No.: 14-12995 Type of Business: Health Care Chapter 11 Petition Date: July 18, 2014 Court: United States Bankruptcy Court Western District of Oklahoma (Oklahoma City) Judge: Hon. Sarah A. Hall Debtor's Counsel: Brandon Craig Bickle, Esq. Sidney K. Swinson, Esq. Mark D.G. Sanders, Esq. GABLE & GOTWALS, P.C. 1100 ONEOK Plaza 100 West Fifth Street Tulsa, OK 74103-4217 Tel: 918-595-4800 Fax: 918-595-4990 Email: bbickle@gablelaw.com sswinson@gablelaw.com msanders@gablelaw.com - and - G. Blaine Schwabe, III, Esq. GABLE & GOTWALS, P.C. One Leadership Square, 15th Floor 211 North Robinson Oklahoma City, OK 73102 Tel: (405) 235-5500 Fax: (405) 235-2875 Email: gschwabe@gablelaw.com Estimated Assets: $100 million to $500 million Estimated Liabilities: $100 million to $500 million The petition was signed by John Harned, president and CEO. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. ERIC HEYWOOD POOKRUM: Loses Appeal Over Rejection of Plan --------------------------------------------------------- Eric Heywood Pookrum and Robbin Camille Johnson took an appeal from an October 3, 2013 Order by Bankruptcy Judge Wendelin I. Lipp that denied their Second Restated Joint Plan of Reorganization under Chapter 11 of the U.S. Bankruptcy Code. Bank of America, N.A. moved to dismiss the appeal as moot. In a July 16, 2014 Memorandum Opinion available at http://is.gd/j35Pc9from Leagle.com, District Judge Roger W. Titus said Bank of America's motion will be denied, and the Bankruptcy Court's Order denying confirmation will be affirmed. In 2005, Pookrum and Johnson received financing from Bank of America to engage in the construction of improved real property in Prince George's County, Maryland. According to Bank of America, Pookrum and Johnson "defaulted on their payment obligations under the Subject Loan" on June 16, 2009, and Bank of America subsequently initiated foreclosure proceedings in January 2010. Bank of America made a claim against Pookrum and Johnson for more than $1.5 million. On September 10, 2010, Pookrum and Johnson filed for relief under Chapter 11 of the U.S. Bankruptcy Code. Pookrum and Johnson filed a Second Restated Chapter 11 Plan on July 12, 2013. At a hearing on September 25, 2013, Bankruptcy Judge Lipp considered the plan, and on October 3, 2013, entered an Order denying confirmation of the Debtors' Second Restated Chapter 11 Plan without leave to amend. Pookrum and Johnson appealed. They failed in their bid to stay the Court's ruling. On October 28, 2013, Judge Lipp entered an Order granting a motion by the United States Trustee to convert the bankruptcy case from Chapter 11 to Chapter 7 pursuant to 11 U.S.C. Sec. 1112(b). Pookrum and Johnson did not appeal this order. The case before the District Court is, ERIC HEYWOOD POOKRUM, et al., Appellants, v. BANK OF AMERICA, N.A., Appellee, CASE NO. RWT 13-CV-3117 (D. Md.). Pookrum and Johnson are represented by James M Greenan, Esq., and Steven Lewis Goldberg, Esq., at McNamee Hosea Jernigan Kim Greenan and Lynch PA. Bank of America, N.A., is represented by: Scott Randal Robinson, Esq. THE FISHER LAW GROUP PLLC 9440 Pennsylvania Avenue, Suite 350 Upper Marlboro, MD 20772 Tel: 301-599-7700, ext. 128 E-mail: srobinson@first-legal.com Eric Heywood Pookrum in Suitland, Maryland, filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No. 10-30909) on September 10, 2010. Bankruptcy Judge Wendelin I. Lipp presides over the case. Pookrum estimated $500,001 to $1 million in assets and $1 million to $10 million in liabilities. A list of the Debtor's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb10-30909.pdf FELICIANO GONZALEZ: Chapter 22 Petition May Be Dismissed -------------------------------------------------------- Bankruptcy Judge Enrique S. Lamoutte in Puerto Rico directed Feliciano Gonzalez Construction, Inc., to show cause by July 30, 2014, why its second Chapter 11 bankruptcy filing in the past 35 days should not be dismissed with a bar to re-filing for one year. Among other things, Judge Lamoutte said that corporations in Puerto Rico are not allowed to appear pro se in judicial proceedings and can only do so through a licensed attorney. Feliciano Gonzalez Construction is a Puerto Rico corporation dedicated to construction and claims to be a small business debtor as defined in 11 U.S.C. Sec. 101(51D). The Company's first Chapter 11 petition (Bankr. D.P.R. Case No. 14-04931) was dismissed on June 23, 2014. The so-called Chapter 22 petition (Case No. 14-05790) was filed by the Debtor pro se on July 15, 2014. A copy of the Court's July 16, 2014 Opinion and Order is available at http://is.gd/n3YfOQfrom Leagle.com. FELICIANO GONZALEZ: Can't Pay Bankr. Filing Fee in Installments --------------------------------------------------------------- Bankruptcy Judge Enrique S. Lamoutte in Puerto Rico said Feliciano Gonzalez Construction, Inc., is not qualified as an "individual debtor" for purposes under Section 109, Fed. R. Bankr. P. 1006(b)(1) and LBR 9006-1(a). Therefore, its "Application for Individuals to Pay the Filing Fee in Installments" is denied as the Debtor is a corporation, not an individual. The Debtor is ordered to pay the complete Chapter 11 fee within 14 days. Failure to do so may result in the dismissal of the case with a bar to re-filing for a period of one year. Feliciano Gonzalez Construction is a Puerto Rico corporation dedicated to construction and claims to be a small business debtor as defined in 11 U.S.C. Sec. 101(51D). The Company's first Chapter 11 petition (Bankr. D.P.R. Case No. 14-04931) was dismissed on June 23, 2014. The so-called Chapter 22 petition (Case No. 14-05790) was filed by the Debtor pro se on July 15, 2014. A copy of the Court's July 16, 2014 Opinion and Order is available at http://is.gd/yiVsZZfrom Leagle.com. FIDELITY & GUARANTY: S&P Affirms 'BB-' Counterparty Credit Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'BB-' long-term counterparty credit and senior debt ratings of Fidelity & Guaranty Life Holdings Inc. (FGL). S&P also affirmed its 'BBB-' long-term counterparty credit and financial strength ratings on Fidelity & Guaranty Life Insurance Co. and Fidelity & Guaranty Life Insurance Co. of New York and revised all outlooks to stable from positive. The ratings are based on an adequate competitive position with growing fixed-indexed and deferred annuity sales and national insurance marketing organization partnerships. Management has been successful in implementing its growth strategy and raising both debt and equity capital while under Harbinger control. However, capital has not grown at the pace S&P previously expected and it do not expect it to reach its 'BBB' capital adequacy targets in the near term. S&P projects total adjusted capital falling about 1% short of its 'BBB' target for the company for Dec. 31, 2014, but falling farther from that target during the next two years. The company has also increased its holdings of noninvestment-grade assets including collateralized loan obligations and corporate loans. High-risk assets as of Dec. 31, 2013, represented 224% of total adjusted capital. S&P views FGL as having a higher risk profile for its high-risk assets and for the refinancing risk it will face in seven years when $300 million in senior notes that are supporting current insurance capital needs mature. Offsetting these concerns, S&P thinks the company has adequate financial flexibility and good fixed-charge coverage. The stable outlook reflects S&P's prospective view of FGL's relatively stable sales, operating performance, and capitalization. S&P expects FGL's indexed annuity and life sales growth to be at least consistent with industry trends so it maintains its top-15 position in fixed-index annuities. FGL will continue to benefit from realized gains in 2014. Excluding investment gains and losses and other one-time items, S&P expects adjusted generally accepted accounting principles EBIT of around $110 million in 2014 and $160 million in 2015, driven by higher premiums, fees, and amortization of deferred acquisition costs. S&P could raise the rating if operating performance continues to improve and either: -- Capitalization becomes sustainably consistent with S&P's 'BBB' targets as measured by its model, with excess capital to offset the higher-risk asset strain, or -- FGL reduces the level of below-investment-grade corporate bonds, loans, or structured securities it currently holds so that high-risk assets drop to less than 100% of total adjusted capital. S&P could lower the rating if capital adequacy under its model declines to substantially less than its 'BBB' targets as a result of faster sales than expected or returns of capital to shareholders. S&P could also lower the ratings if FGL's investment risk increases or if its competitive position weakens. FLORIDA GAMING: Morrison Brown to Prepare 2012 & 2013 Tax Returns ----------------------------------------------------------------- Florida Gaming Centers, Inc., et al. sought and obtained permission from the U.S. Bankruptcy Court to employ Manuel E. Pravia as tax consultant, and expand the scope of employment of Morrison, Brown, Argiz & Farra, LLC. The Debtors, in their application, requested for the expansion of MBAF's employment to include tax services. Specifically, MBAF will prepare the tax returns for the years ended Dec. 31, 2012, and Dec. 31, 2013 for Florida Gaming Corporation. MBAF has advised the Debtors that the estimated fees for the additional services to be provided will be $45,000, as: Service Provided Fees ---------------- ---- Tax Return - Tax Year 2012 $25,000 Tax Return - Tax Year 2013 $20,000 Manuel E. Pravia, a principal of MBAF, aasures the Court that MBAF is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. On March 18, 2013, David Jonas as receiver for Florida Gaming Centers, Inc., the wholly-owned subsidiary, and primary operating asset, of Florida Gaming Corporation, appointed MBAF as the new accountants to perform the audit of Centers for its fiscal year ended Dec. 31, 2012. King + Company, P.S.C., has been the Company's independent auditor since 1994, and in connection with King's work on the Dec. 31, 2012, audit, the Company, in consultation with King and Morrison, determined that, because Morrison will audit substantially all of the Company's consolidated revenue and assets in connection with its audit of Centers, Morrison would be the Company's "principal accountant". On March 27, 2013, the sole member of the Company's Audit Committee, Dr. George Galloway, met with representatives of Morrison and of King. Following these meetings, the Audit Committee recommended the ratification and approval of Morrison's appointment as the Company's principal accountant for the Dec. 31, 2012 audit. On March 27, Company's board of directors ratified and approved Morrison's appointment as Company's principal accountant. Before its appointment as Centers' auditor, Morrison was previously engaged by Centers on Oct. 12, 2012, to act as an expert witness on Centers' behalf in the previously disclosed case filed in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida styled ABC Funding, LLC, as Administrative Agent for Summit Partners Subordinated Debt Fund IV-A, L.P., Summit Partners Subordinated Debt Fund IV-B, L.P., JPMorgan Chase Bank, N.A., Locust Street Funding LLC, Canyon Value Realization Fund, L.P., Canyon Value Realization Master Fund, L.P., Canyon Distressed Opportunity Master Fund, L.P., and Canyon- GRF Master Fund II, L.P., vs. Florida Gaming Centers, Inc., a Florida corporation, and Florida Gaming Corporation, a Delaware corporation. Morrison resigned from the expert witness engagement prior to accepting the audit engagement. About Florida Gaming Florida Gaming Centers Inc. filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 13-29597) in Miami on Aug. 19, 2013. Florida Gaming Centers operates a casino and jai-alai frontons in Miami. The Company disclosed debt of $138.3 million and assets of $180 million in its petition. Its parent, Florida Gaming Corp. (FGMG:US), and two other affiliates also sought court protection. Bankruptcy Judge Robert A. Mark oversees the case. The Debtors are represented by Luis Salazar, Esq. and Jesse R. Cloyd, Esq. at Salazar Jackson, LLP of Miami, Florida. ABC Funding, LLC, as Administrative Agent for a consortium of prepetition lenders, and the prepetition lenders are represented by Dennis Twomey, Esq., and Andrew F. O'Neill, Esq., at SIDLEY AUSTIN LLP, in Chicago, Illinois; and Drew M. Dillworth, Esq., and Marissa D. Kelley, Esq., at Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A., in Miami, Florida. The Prepetition Lenders are Summit Partners Subordinated Debt Fund IV-A, L.P., Summit Partners Subordinated Debt Fund IV-B, L.P., JPMorgan Chase Bank, N.A., Locust Street Funding LLC, Canyon Value Realization Fund, L.P., Canyon Value Realization Master Fund, L.P., Canyon Distressed Opportunity Master Fund, L.P., and Canyon-GRF Master Fund II, L.P. Counsel to the Official Joint Committee of Unsecured Creditors are Glenn D. Moses, Esq., and Paul J. Battista, Esq., at Genovese Joblove & Battista, P.A., in Miami, Florida. * * * The Debtors have sold their assets to Fronton Holdings, LLC, an entity established by ABC Funding. The $140,000,000 purchase price consisted of a credit bid of $99,907,336 on account of the Loan Claim and cash in the amount of $40,092,664. The Bankruptcy Court approved the sale on April 7, 2014. The parties consummated the 363 Sale on April 30. The Debtors have submitted to the Bankruptcy Court a Disclosure Statement explaining their Second Amended Joint Plan of Liquidation dated June 16, 2014. The Plan serves as a separate plan of liquidation for each of the Debtors. The Plan does not seek to effect a substantive consolidation or other combination of the separate estates of each Debtor but instead provides that creditors of each Debtor will be permitted to assert their claims only against the Debtor(s) which they hold Allowed Claims. FRANKLIN PIERCE: S&P Lowers Long-Term Rating to 'CCC'; Outlook Neg ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its long-term rating to 'CCC' from 'B' on New Hampshire Health & Educational Facilities Authority's debt, issued for Franklin Pierce University (FPU). The outlook is negative. "The downgrade and negative outlook assignment reflects our assessment of Franklin Pierce's failure to make a required monthly deposit to the Trustee-held debt service fund on April 20, 2014 and the loss of its line of credit in September 2013, coupled with heavy reliance on bank lines for seasonal cash flow," said Standard & Poor's credit analyst Ashley Ramchandani. "In addition, the rating action reflects our view of FPU's issuance of a $1.86 million loan and a $5 million line of credit with a bank in May 2014 that includes a priority lien on gross revenues, which effectively subordinates bondholder security," added Ms. Ramchandani. Pursuant to S&P's 'CCC' rating criteria, with very limited unrestricted assets available to meet obligations, weak operating liquidity, and violation of covenants; it is S&P's opinion that Franklin Pierce is currently vulnerable to nonpayment and dependent on favorable business conditions to meet its financial obligations and could default within the next 12 months. FREEDOM INDUSTRIES: West Va. Chemical Spill Claims Trickling In --------------------------------------------------------------- Jacqueline Palank, writing for The Wall Street Journal, reported that Freedom Industries Inc. expected a deluge of bankruptcy claims from the 300,000 some West Virginians whose water supply was contaminated as a result of the chemical spill. But the deluge never happened because as of July 3, just 70 claims were on file in the company's bankruptcy case, the according to the Journal, citing court papers. An Aug. 1 deadline is set for individuals and businesses affected by the spill must stake their claims for compensation from Freedom, which has shut down since entering Chapter 11, the Journal 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. The Committee retained Frost Brown Todd LLC as counsel. On March 18, the Bankruptcy Court approved the hiring of Mark Welch at MorrisAnderson in Chicago as Freedom's chief restructuring officer. FREEDOM INDUSTRIES: Court OKs ARCADIS as Environmental Consultant ----------------------------------------------------------------- Freedom Industries, Inc. sought and obtained authorization from the U.S. Bankruptcy Court for the Southern District of West Virginia to employ ARCADIS U.S., Inc. as environmental consultant for the Debtor, effective July 2, 2014. The responsibilities of ARCADIS will include, inter alia, overseeing the remediation subcontractor, serving as a liaison between the West Virginia Department of Environmental Protection and the Debtor, assisting with structural and remediation design changes to the Etowah Facility, and providing any other assistance requested by the CRO. Recognizing the need to fully implement the Remediation Plan and the terms of the WVDEP Consent Order promptly, efficiently and effectively as possible, the Debtor sought expedited relief in connection with the Application and the retention agreement attached to the Declaration. ARCADIS' current customary hourly rates for the individuals expected to participate in these cases range from $55 to $200 per hour. Pursuant to the terms of the Engagement Letter submitted by ARCADIS, the total cost of time and expenses charged to the Debtor for its retention in this bankruptcy case shall not exceed $166,345. ARCADIS will also be reimbursed for reasonable out-of-pocket expenses incurred. The CRO has paid ARCADIS on behalf of the Debtor a retainer of $100,000 which will be held by ARCADIS and applied against the final $100,000 fees and expenses invoiced by ARCADIS. David Jason Manzo, certified project manager of ARCADIS, 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. ARCADIS can be reached at: ARCADIS U.S., Inc. 630 Plaza Drive, Suite 200 Highlands Ranch, CO 80126-2377 Tel: +1 (720) 344-3500 Fax: +1 (720) 344-3535 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. The Committee retained Frost Brown Todd LLC as counsel. On March 18, the Bankruptcy Court approved the hiring of Mark Welch at MorrisAnderson in Chicago as Freedom's chief restructuring officer. FURNITURE BRANDS: Liquidation Plan Confirmed -------------------------------------------- Judge Christopher Sontchi of the U.S. Bankruptcy Court for the District of Delaware on July 14 issued an order confirming the Second Amended Joint Plan of Liquidation of FBI Wind Down, Inc., f/k/a Furniture Brands International, Inc., and its debtor affiliates. The Plan filed by Furniture Brands, which sold its business to KPS Capital Partners LP, incorporates both a global settlement between the furniture maker and the Official Committee of Unsecured Creditors resolving issues that "materially impact" creditor recoveries and a settlement with the Pension Benefit Guaranty Corp., Mr. Rochelle said. The company then obtained the Committee's support of the Plan because of the settlement, BankruptcyData reported. General unsecured creditors will recover 3.4 percent to 13.9 percent on as much as $370 million owed, depending on which of the Furniture Brands companies owes the debt, Mr. Rochelle added. About Furniture Brands Furniture Brands International (NYSE:FBN) -- http://www.furniturebrands.com-- engaged in the designing, manufacturing, sourcing and retailing home furnishings. Furniture Brands markets products through a wide range of channels, including company owned Thomasville retail stores and through interior designers, multi-line/ independent retailers and mass merchant stores. Its brands include Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and LaBarge. The balance sheet at June 29, 2013, showed $546.73 million in total assets against $550.13 million in total liabilities. On Sept. 9, 2013, Furniture Brands International, Inc. and 18 affiliated companies sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12329). Attorneys at Paul Hastings LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. Alvarez and Marsal North America, LLC, is the restructuring advisors. Miller Buckfire & Co., LLC is the investment Banker. Epiq Systems Inc. dba Epiq Bankruptcy Solutions is the claims and notice agent. The official creditor's committee is comprised of the Pension Benefit Guaranty Corp., Milberg Factors Inc. and five suppliers. The Committee tapped Blank Rome LLP as co-counsel, Hahn & Hessen LLP as lead counsel, BDO Consulting as financial advisor, and Houlihan Lokey Capital, Inc., as investment banker. In November 2013, Furniture Brands won bankruptcy court approval to sell the business to KPS Capital Partners LP for $280 million. Private-equity investor KPS formed a new company named Heritage Home Group LLC to operate the business. Furniture Brands changed its name to FBI Wind Down, Inc., following the sale. GINGKO ROSE: Case Summary & 8 Unsecured Creditors ------------------------------------------------- Debtor: Gingko Rose Ltd. 19528 Ventura Blvd. #184 Tarzana, CA 91356 Case No.: 14-13456 Chapter 11 Petition Date: July 18, 2014 Court: United States Bankruptcy Court Central District of California (San Fernando Valley) Judge: Hon. Victoria S. Kaufman Debtor's Counsel: Alan W Forsley, Esq. FREDMAN LIEBERMAN LLP 1875 Century Park East, Ste 2200 Los Angeles, CA 90067 Tel: 310-284-7350 Fax: 310-432-5999 Email: awf@fl-lawyers.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by David Darwish, managing member, Logerm LLC, managing partner of Gingko Rose. A list of the Debtor's eight largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb14-13456.pdf GLOBAL GEOPHYSICAL: Taps UHY LLP as Independent Auditor ------------------------------------------------------- Global Geophysical Services, Inc. and its debtor-affiliates ask for permission from the Hon. Richard Schmidt of the U.S. Bankruptcy Court for the Southern District of Texas to employ UHY LLP as independent auditor, nunc pro tunc to June 9, 2014. Financial Statement Audit Services Subject to further Court order and the Debtors' right to terminate, UHY will provide a variety of audit-related services to the Debtors, including: -- auditing the Debtors' consolidated financial statements; -- conducting quarterly reviews of the Debtors' unaudited interim financial information; and -- auditing the Debtors' internal controls over financial reporting. UHY will provide the Financial Statement Audit Services to the Debtors at its standard hourly rates and will seek reimbursement of all reasonable and necessary out-of-pocket expenses as set forth in the Financial Statement Engagement Letter and the Declaration. UHY's fee estimate: -- Integrated audit of the financial statements, and the effectiveness of internal control over the Company's financial reporting and review of SEC Form 10-K as of and for the year ending Dec. 31, 2014: estimated $480,000 to $520,000. -- Review of quarterly financial statements included in SEC Form 10-Q in accordance with Public Company Accounting Oversight Board standards for the quarters ending Mar. 31, 2014, June 30, 2014, and Sept. 30, 2014: estimated $65,000 per quarter. 401(k) Audit Services Subject to further Court order and the Debtors' right to terminate, UHY will provide 401(k) audit services to the Debtors, including: -- audit the financial statements of the Global Geophysical Services, Inc. 401(k) Plan; and -- perform certain procedures directed at considering compliance by the Global Geophysical Services, Inc. 401(k) Plan with applicable Internal Revenue Service requirements for tax exempt status and ERISA plan qualification requirements. UHY will provide the 401(k) Audit Services at its standard hourly rates and will seek reimbursement of all reasonable and necessary out-of-pocket expenses as set forth in the 401(k) Engagement Letter and the Declaration. UHY's fee estimate for the 401(k) Audit Services is approximately $13,500, exclusive of administrative and other out-of-pocket expenses. Fees for services under both the Financial Statement Fee Structure and the 401(k) Fee Structure will generally be based on time expended at UHY's standard hourly rates. The range of UHY's standard hourly rates is: Partner $535-$560 Principal $425-$515 Senior Manager $340-$400 Manager $245-$285 Seniors $180-$200 Senior Staff $155-$165 Staff $140-$150 On April 30, 2014, the Debtors paid UHY a cure payment in the amount of $777,000, the amount necessary to cure the defaults under and to assume the agreement. After such payment, UHY had no claim against the Debtors related to its provision of prepetition auditing and tax services. Mark Anderson, partner of UHY, 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 Southern District of Texas will hold a hearing on the application on July 22, 2014, at 10:00 a.m. UHY can be reached at: Mark Anderson UHY LLP 2929 Allen Parkway, 20th Floor Houston, TX 77019-7100 Tel: (713) 561-6500 Fax: (713) 960-9549 About Global Geophysical, Autoseis et al. Global Geophysical Services Inc., a provider of seismic data for the oil and gas drilling industry, sought bankruptcy protection, intending to reorganize on its own with additional capital or explore a sale or other transaction. Based in Missouri City, Texas, Global Geophysical disclosed assets of $468.7 million and liabilities totaling $407.3 million as of Sept. 30, 2013. Liabilities include $81.8 million on a secured term loan owing to TPG Specialty Lending Inc. and Tennenbaum Capital Partners LLC. TPG is the lenders' agent. Global also owes $250 million on two issues of 10.5 percent senior unsecured notes, with Bank of New York Mellon Trust Co. as indenture trustee. Global Geophysical and five affiliates, including Autoseis, Inc. (lead debtor), filed Chapter 11 petitions in Corpus Christi, Texas (Bankr. S.D. Tex. Lead Case No. 14-20130) on March 25, 2014. The Debtors are represented by C. Luckey McDowell, Esq., Omar Alaniz, Esq., and Ian E. Roberts, Esq., at Baker Botts, LLP, in Dallas, Texas; and Shelby A. Jordan, Esq., and Nathanial Peter Holzer, Esq., at Jordan, Hyden, Womble, Culbreth, & Holzer, PC in Corpus Christi, Texas. Alvarez & Marsal serves as the Debtors' restructuring advisors, Fox Rothschild Inc. as financial advisor, and Prime Clerk as claims and noticing agent. Judy A. Robbins, the U.S. Trustee for Region 7, has selected seven creditors to the Official Committee of Unsecured Creditors. The Committee tapped Greenberg Traurig, LLP as counsel; and Lazard Freres & Co. LLC and Lazard Middle Market LLC, as financial advisors and investment bankers. The Ad Hoc Group of Noteholders and the DIP Lenders are represented by Marty L. Brimmage, Jr., Esq., Charles R. Gibbs, Esq., Michael S. Haynes, Esq., and Lacy M. Lawrence, Esq., at Akin Gump Strauss Hauer & Feld LLP. Prepetition secured lender TPG is represented by David M. Bennett, Esq., Tye C. Hancock, Esq., and Joseph E. Bain, Esq., at Thompson & Knight LLP; and Adam C. Harris, Esq., Lawrence V. Gelber, Esq., David M. Hillman, Esq., and Brian C. Tong, Esq., at Schulte Roth & Zabel LLP. GSE ENVIRONMENTAL: Hires BDO USA as Independent Auditors -------------------------------------------------------- GSE Environmental, Inc. and its debtor-affiliates seek authorization from the U.S. Bankruptcy Court for the District of Delaware to employ BDO USA, LLP as independent auditors, nunc pro tunc to May 4, 2014 petition date. The Debtors require BDO to: (a) audit the Debtors' consolidated financial statements for the fiscal year ending Dec. 31, 2014; and (b) review the Debtors' condensed consolidated quarterly financial statements for the quarters ending Mar. 31, 2014, Jun. 30, 2014 and Sept. 30, 2014 to be included in filings with the Securities and Exchange Commission. In addition, BDO may provide such other consulting, advice, research, planning, and analysis related to the auditing services, consistent with the Engagement Letter, as may be requested from time to time by the Debtors. The Engagement Letter provides for the following compensation for BDO: -- Audit Services. Audit services are provided to the Debtors using estimated fee amounts, which are included in the Engagement Letter and summarized below, none of which have been paid prior to the Petition Date. Audit Service 2014 Estimated Fee ------------------ ------------- Annual Audit $482,000 Quarterly Reviews $90,000 The fee estimates are based on the time required by individuals assigned to the engagement to complete the engagement and are calculated using BDO's previous experience performing similar work for the Debtors since 2007. In the event circumstances arise which may cause BDO's audit fee to exceed or fall short of its estimate, BDO will notify the Debtors in advance of invoicing the Debtors; and -- Other Services. If operational, accounting, or other auditing matters arise which fall outside the scope of the foregoing auditing services but within the scope of the Engagement Letter, BDO shall perform such work at the Debtors' request on an hourly basis in accordance with BDO's ordinary and customary hourly rates in effect on the date such services are rendered. BDO has informed the Debtors that its hourly rates as of Feb. 28, 2014, which are applicable to the professionals and staff members assigned to rendering accounting tax advisory services, range as follows: Billing Category Hourly Rate ---------------- ----------- Partners/Managing Directors $475-$795 Directors/Senior Managers $325-$550 Managers/Vice Presidents $325-$425 Seniors/Analysts $200-$350 Staffs $100-$225 -- Costs. In addition to any fees payable to BDO, the Debtors propose to reimburse BDO for all reasonable and documented out-of-pocket expenses, which will be charged at actual costs incurred by BDO personnel in connection with providing the services described herein. In the 90 days before the petition date, the Debtors paid BDO approximately $344,937 for fees and $40,228 for reimbursement of expenses. As of the petition date, the Debtors do not owe BDO any fees for services performed or expenses incurred. Michael Grubbs, an assurance partner in BDO, 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. BDO can be reached at: Michael Grubbs BDO USA, LLP 333 Clay Street Houston, TX 77002 Tel: (713) 659-6551 Fax: (713) 659-3238 About GSE Environmental GSE Environmental -- http://www.gseworld.com-- is a global manufacturer and marketer of geosynthetic lining solutions, products and services used in the containment and management of solids, liquids and gases for organizations engaged in waste management, mining, water, wastewater and aquaculture. Headquartered in Houston, Texas, USA, GSE maintains sales offices throughout the world and manufacturing facilities in the US, Chile, Germany, Thailand, China and Egypt. GSE Environmental, Inc. and its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-11126) on May 4, 2014 as part of a restructuring support agreement with their lenders. The Debtors are seeking joint administration of their Chapter 11 cases. GSE announced an agreement with its lenders to restructure its balance sheet by converting all of its outstanding first lien debt to equity, leaving the Company well-positioned for long-term growth and profitability. The Company has tapped Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP as counsel, Alvarez & Marsal North America, LLC, as restructuring advisor, and Moelis & Company, as financial advisor. The first lien lenders are represented by Wachtell, Lipton, Rosen & Katz. Prime Clerk is the Debtors' claims agent. Cantor Fitzgerald Securities as agent for a consortium of DIP lenders is represented by Nathan Z. Plotkin, Esq., at Shipman & Goodwin LLP, in Hartford, Connecticut. The DIP Lenders are represented by Scott K. Charles, Esq., Emily D. Johnson, Esq., and and Neil K. Chatani, Esq., at Wachtell, Lipton, Rosen & Katz, in New York. The local Delaware counsel to the DIP Lenders and the DIP Agent is Russell C. Silberglied, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware. GSE Environmental's non-U.S. subsidiaries are not included in the U.S. Chapter 11 filings and will continue to operate in the ordinary course without interruption. * * * The Bankruptcy Court has approved the disclosure statement filed by GSE Environmental Inc. for its plan of reorganization. The hearing at which the Court will consider confirmation of the Plan will commence at 10:30 a.m., prevailing Eastern Time, on July 25, 2014. GSE ENVIRONMENTAL: Expands Scope of Alvarez & Marsal's Employment ----------------------------------------------------------------- GSE Environmental, Inc. and its debtor-affiliates seek authorization from the U.S. Bankruptcy Court for the District of Delaware to expand the scope of Alvarez & Marsal North America, LLC's retention nunc pro tunc to June 4, 2014 to initiate the Quality Earnings Update, on the terms set forth in the Engagement Letter. The Debtors also ask for permission to utilize, in their discretion and without further Court order, additional Alvarez & Marsal Personnel as required to assist in the completion of the Quality Earnings Update, subject to the compensation and disclosure provision set forth in the retention order. As reported in the Troubled Company Reporter, the Debtor and its affiliates sought and obtained permission to employ Alvarez & Marsal North America, LLC and the firm's Dean E. Swick as the Debtors' Vice President for Finance, nunc pro tunc to May 4, 2014 petition date. On June 4, 2014, at the request of the first lien credit facility lenders and the Debtors, the Vice President, Finance directed certain additional Alvarez & Marsal Personnel to begin to update Alvarez & Marsal's review of key revenue and expense components of the Debtors' business (the "Quality of Earnings Update"). The Quality of Earnings Update continues the work initiated by certain Alvarez & Marsal Personnel in the Fall of 2013 and tracks the Debtors' internal accounting and financial reporting results. Additionally, the Quality of Earnings Update entails analyzing certain financial trends to determine the Debtors' progress on various operational and financial initiatives, including a broad cost-cutting effort designed to streamline the Debtors' business and reduce inefficiencies. Work on the Quality of Earnings Update will be performed on an hourly basis and is estimated by Alvarez & Marsal to total approximately $80,000 in additional fees. The Court for the District of Delaware will hold a hearing on the application on July 25, 2014, at 10:30 a.m. Objections were due July 18, 2014. Alvarez & Marsal can be reached at: Dean E. Swick ALVAREZ & MARSAL NORTH AMERICA, LLC 600 Madison Avenue, 8th Floor New York, NY 10022 Tel: +1 (212) 759-4433 Fax: +1 (212) 759-5532 About GSE Environmental GSE Environmental -- http://www.gseworld.com-- is a global manufacturer and marketer of geosynthetic lining solutions, products and services used in the containment and management of solids, liquids and gases for organizations engaged in waste management, mining, water, wastewater and aquaculture. Headquartered in Houston, Texas, USA, GSE maintains sales offices throughout the world and manufacturing facilities in the US, Chile, Germany, Thailand, China and Egypt. GSE Environmental, Inc. and its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-11126) on May 4, 2014 as part of a restructuring support agreement with their lenders. The Debtors are seeking joint administration of their Chapter 11 cases. GSE announced an agreement with its lenders to restructure its balance sheet by converting all of its outstanding first lien debt to equity, leaving the Company well-positioned for long-term growth and profitability. The Company has tapped Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP as counsel, Alvarez & Marsal North America, LLC, as restructuring advisor, and Moelis & Company, as financial advisor. The first lien lenders are represented by Wachtell, Lipton, Rosen & Katz. Prime Clerk is the Debtors' claims agent. Cantor Fitzgerald Securities as agent for a consortium of DIP lenders is represented by Nathan Z. Plotkin, Esq., at Shipman & Goodwin LLP, in Hartford, Connecticut. The DIP Lenders are represented by Scott K. Charles, Esq., Emily D. Johnson, Esq., and and Neil K. Chatani, Esq., at Wachtell, Lipton, Rosen & Katz, in New York. The local Delaware counsel to the DIP Lenders and the DIP Agent is Russell C. Silberglied, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware. GSE Environmental's non-U.S. subsidiaries are not included in the U.S. Chapter 11 filings and will continue to operate in the ordinary course without interruption. HILLSHIRE BRANDS: Fitch Raises Issuer Default Rating From 'BB' -------------------------------------------------------------- Fitch Ratings has removed The Hillshire Brands Co.'s (Hillshire; NYSE: HSH) ratings from Rating Watch Evolving and upgraded the ratings following Hillshire's July 2, 2014 definitive agreement to be acquired by Tyson Foods, Inc. (Tyson; NYSE: TSN) for $63 per share in cash or $8.6 billion, including net debt and preliminary financing details. Hillshire's ratings are upgraded as follows: -- Long-term Issuer Default Rating (IDR) to 'BBB' from 'BB'; -- Senior unsecured notes to 'BBB' from 'BB'; -- Bank credit facility to 'BBB' from 'BB'; -- Short-term IDR to 'F2' from 'B'; -- Commercial paper to 'F2' from 'B'. The Ratings Outlook is Stable. At March 29, 2014, Hillshire had $942 million of total debt. KEY RATING DRIVERS: Upgraded Due to Pending Buyout by Tyson The upgrade reflects Fitch's view that there is a high probability that Tyson's acquisition of Hillshire will be completed, Tyson's solid credit profile, the expectation of strong operational and strategic ties between the two entities, and Fitch's Parent and Subsidiary Rating Linkage criteria. Fitch currently rates Tyson 'BBB/F2' with a Stable Outlook. The Boards of Directors for both companies have unanimously approved the transaction, which is expected to close by Sept. 27, 2014, the last day of Tyson's fiscal year. The buyout represents a 69% premium over Hillshire's stock price on May 9, the day prior to Hillshire's agreement to acquire Pinnacle Foods Inc. (Pinnacle; NYSE: PF), which was later terminated. The transaction value includes a $163 million payment Tyson will pay Pinnacle for the termination of Pinnacle's merger agreement with Hillshire. Pursuant to the definitive agreement, HMB Holdings, Inc., a subsidiary of Tyson, commenced a tender offer for 100% of the outstanding shares of Hillshire's common stock on July 16 with closing of the tender offer subject to standard regulatory conditions being met. Credit Measures: Hillshire's total debt-to-EBITDA was 1.7x, EBITDA-to-interest expense was 10.9x, funds from operations (FFO) interest coverage was 7.1x and free cash flow (FCF) was $96 million for the latest 12 month (LTM) period ended March 29, 2014. Tyson's total debt- to-EBITDA was 0.9x, EBITDA-to-interest expense was 16.3x, FFO interest coverage was 12.2x and FCF was $704 million for the LTM period ended March 29,2014. Tyson's pro forma leverage will be approximately 3.1x and Fitch estimates that FCF could average $800 million annually for the combined entity. Debt Structure: Hillshire is expected to become a wholly owned subsidiary of Tyson. Hillshire's debt, consisting mainly of $400 million 2.75% 2015 notes, $278 million 4.1% 2020 notes and $152 million 6.125% 2032 notes, is likely to remain at the Hillshire corporate level. The company also has $102 million of current maturities which primarily consist of zero coupon notes due in 2014. Terms for all bonds, except those due in 2032, include a provision for both a change of control and downgrades to non-investment grade by three rating agencies, which is not anticipated. Hillshire is likely to become a material subsidiary of Tyson, as defined by Tyson's debt agreements, and terms of Tyson's debt include cross-default language to material subsidiaries. An event of default would occur for Tyson's term loans, which would become due immediately, if Hillshire fails to perform on its obligations. Liquidity: At March 29, 2014, Hillshire had $219 million of cash, $170 million of short-term investments, and $747 million of availability, excluding $3 million of letters of credit, under its $750 million revolving credit facility expiring June 2017. Hillshire's quarter-end liquidity does not reflect $165 million of cash to finance its recent acquisition of Van's Natural Foods which closed in May 2014. RATING SENSITIVITIES: Future developments that may, individually or collectively, lead to a positive rating action include: -- Any upgrade will be predicated on Tyson's ratings, given Fitch's Parent and Subsidiary Rating Linkage criteria. -- Due to Tyson's increase in leverage to finance the acquisition a positive rating action is not likely to occur during the next 18 months. It is Fitch's expectation that Tyson's leverage will decline to the 2.0x-2.5x range within 18-24 months of the transaction close. Future developments that may, individually or collectively, lead to a negative rating action include: -- Hillshire's ratings are not likely to be downgraded in the near-to-intermediate term, given Fitch's 'BBB/F2' rating on Tyson. -- Although not currently anticipated, ratings could be negatively affected by a downgrade in Tyson's ratings. HOWREY LLP: Suits v. Jones Day, Seyfarth Stay in Bankr. Court ------------------------------------------------------------- The adversary proceedings commenced by Allan B. Diamond, the Chapter 11 bankruptcy trustee for Howrey LLP, against law firms Jones Day and Seyfarth Shaw LLP will stay in bankruptcy court after District Judge Saundra Brown Armstrong denied Jones Day's and Seyfarth's separate requests to withdraw bankruptcy court reference of those lawsuits. Mr. Diamond has filed multiple adversary proceedings against numerous law firms, including Jones Day and Seyfarth, seeking to recover profits from unfinished business that Howrey's partners brought with them to their new law firms under the theory that the profits were fraudulent transfers. The Trustee filed a complaint against Jones Day on May 10, 2013. The complaint alleges that, shortly before dissolution, Howrey's partners amended their partnership agreement to adopt a so-called "Jewel Waiver," which provides that, in the event of dissolution, "neither the Partners nor the Partnership shall have any claim or entitlement to clients, cases or matters ongoing at the time of dissolution other than the entitlement for collections of amounts due for work performed by the Partners and other Partnership personnel on behalf of the Partnership prior to the earlier of their respective departure dates from the Partnership or the date of dissolution of the Partnership." The complaint asserts claims against Jones Day under state and federal law seeking to avoid fraudulent transfers. Mr. Diamond seeks to recover the profits Jones Day earned by completing Howrey's unfinished business that former Howrey partners took with them to Jones Day after leaving Howrey. Following the filing of Jones Day's motion to withdraw the bankruptcy reference, Bankruptcy Judge Montali issued an order recommending that withdrawal of the reference be deferred until all pretrial proceedings are completed in the bankruptcy court. In support of his recommendation, Judge Montali stated that the following factors support deferring withdrawal of reference until all pretrial matters have been completed: (1) the bankruptcy court's docket is not heavy and permits all pretrial matters to be completed as soon as the parties are ready; (2) this action might be settled before trial; (3) this action might be resolved by motion before trial; (4) completing all pretrial proceedings in the bankruptcy court will reduce the burden on the district court2; and (5) the bankruptcy court has considerable expertise regarding fraudulent conveyance law and the particular issues presented in this law firm bankruptcy, including the Trustee's theory of the case and Jones Day's defenses. The cases are ALLAN B. DIAMOND, Chapter 11 Trustee for Howrey LLP, Plaintiff, v. JONES DAY, Defendant, AND RELATED CASES, CASE NO. C 13-3910 SBA, RELATED CASE NO. C 13-03905 SBA, CASE NO. C 13-03906 SBA., C 13-03907 SBA, C 13-03909 SBA, C 13-03911 SBA, C 13-03912 SBA, C 14-2255 SBA, C 14-2256 SBA, C 14-2375 SBA (N.D. Cal.). A copy of the Court's July 15, 2014 Order is available at http://is.gd/ujy0U8from Leagle.com. About Howrey LLP Three creditors filed an involuntary Chapter 7 petition (Bankr. N.D. Cal. Case No. 11-31376) on April 11, 2011, against the remnants of the Washington-based law firm Howrey LLP. The filing was in San Francisco, where the firm had an office. The firm previously was known as Howrey & Simon and Howrey Simon Arnold & White LLP. The firm at one time had more than 700 lawyers in 17 offices. The partners voted to dissolve in March 2011. The firm specialized in antitrust and intellectual-property matters. The three creditors filing the involuntary petition together have $36,600 in claims, according to their petition. The involuntary chapter 7 petition was converted to a chapter 11 case in June 2011 at the request of the firm. In its schedules filed in July, the Debtor disclosed assets of $138.7 million and liabilities of $107.0 million. Representing Citibank, the firm's largest creditor, is Kelley Cornish, Esq., a partner at Paul, Weiss, Rifkind, Wharton & Garrison. Representing Howrey is H. Jason Gold, Esq., a partner at Wiley Rein. The Official Committee of Unsecured Creditors is represented in the case by Bradford F. Englander, Esq., at Whiteford, Taylor And Preston LLP. In September 2011, Citibank sought conversion of the Debtor's case to Chapter 7 or, in the alternative, appointment of a Chapter 11 Trustee. The Court entered an order appointing a Chapter 11 Trustee. In October 2011, Allan B. Diamond was named as Trustee. He is represented by Andrew Baxter Ryan, Esq., and Stephen Todd Loden, Esq., at Diamond McCarthy LLP as counsel. HRK HOLDINGS: Cushman & Wakefield Approved as Real Estate Broker ---------------------------------------------------------------- HRK Holdings, LLC, and HRK Industries, LLC sought and obtained authorization from the Hon. K. Rodney May of the U.S. Bankruptcy Court for the Middle District of Florida to employ Cushman & Wakefield of Florida, Inc. as real estate broker with respect to potential sale of land located in Manatee County, Florida. Cushman & Wakefield will be compensated 5% of the total sales price. If a co-broker is utilized, then 7% of the total sales price, to be split 50/50, including Cushman & Wakefield brokers not on the listing team. Court papers filed by the Debtor further disclosed that in the event all or a portion of the Property is purchased by so-called Carve-out parties identified on Exhibit A of the Debtors' filing, then the commission to Cushman & Wakefield brokers will be reduced to 2.5% of the total sales price. All commission must be approved by the Bankruptcy Court. Bruce K. Erhardt, real estate broker and executive director of Cushman & Wakefield, 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. Cushman & Wakefield can be reached at: Bruce K. Erhardt CUSHMAN & WAKEFIELD OF FLORIDA, INC. One Tampa City Center, Ste. 3600 Tampa, FL 33602 Tel: (813) 223-6300 Fax: (813) 221-9166 HRK Holdings and HRK Industries LLC filed for Chapter 11 protection (Bankr. M.D. Fla. Case Nos. 12-09868 and 12-09869) on June 27, 2012. Judge K. Rodney May oversees the case. Barbara A. Hart, Esq., and Scott A. Stichter, Esq., at Stichter, Riedel, Blain & Prosser, P.A., represents the Debtors. HRK Holdings disclosed $33,366,529 in assets and $26,092,559 in liabilities in its revised schedules. According to the Debtors, the bankruptcy filing was necessitated by the immediate need to sell a portion of the remaining property to create liquidity for (a) funding the urgent management of the site-related environmental concerns; the benefit of creditors; funding a litigation filed by the Debtors; and funding of expenses related to additional sales of the remaining property. HRK Holdings is selling real property assets to Allied Universal Corp. and Mayo Fertilizer, Inc. The Court allowed HRK and the purchasers to enter into any modifications to the agreements without need of further Court approval, provided that no amendments will occur without prior consent of Regions Bank. IRISH BANK: Urges Court to Nix Late Bid for Tampa Mall ------------------------------------------------------ Law360 reported that the foreign representatives for Chapter 15 debtor Irish Bank Resolution Corp. urged the Delaware bankruptcy court to reject a late $10 million offer for a Florida shopping mall from developer Liberty Channelside LLC and declare Tampa Bay Lightning owner Jeff Vinik winner of an auction for the complex's lease. According to the report, in a motion before the Delaware bankruptcy court, foreign representatives for the successor to failed Anglo Irish Bank Eamonn Richardson and Kieran Wallace said that Liberty doesn't have standing to challenge the sale process. About Irish Bank Resolution Irish Bank Resolution Corp., the liquidation vehicle for what was once one of Ireland's largest banks, filed a Chapter 15 petition (Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect U.S. assets of the former Anglo Irish Bank Corp. from being seized by creditors. Irish Bank Resolution sought assistance from the U.S. court in liquidating Anglo Irish Bank Corp. and Irish Nationwide Building Society. The two banks failed and were merged into IBRC in July 2011. IBRC is tasked with winding them down and liquidating their assets. In February, when Irish lawmakers adopted the Irish Bank Resolution Corp., IBRC was placed into a special liquidation in the Irish High Court to complete liquidation and distribution of the two banks' assets. IBRC's principal asset as of June 2012 was a loan portfolio valued at some EUR25 billion (US$33.5 billion). About 70 percent of the loans were to Irish borrowers. Some 5 percent of the portfolio was under U.S. law, according to a court filing. Total liabilities in June 2012 were about EUR50 billion, according to a court filing. Most assets in the U.S. have been sold already. IBRC is involved in lawsuits in the U.S. IBRC was granted protection under Chapter 15 of the U.S. Bankruptcy Code in December 2013. Kieran Wallace and Eamonn Richardson of KPMG have been named the special liquidators. JEH COMPANY: Withdraws Bid to Use Frost Bank's Cash Collateral -------------------------------------------------------------- JEH Company withdrew its motion to use the cash collateral of its lender Frost Bank. The motion was filed in May last year in U.S. Bankruptcy Court for the Northern District of Texas. JEH's lawyer, Mark Petrocchi, Esq., at Griffith Jay & Michel LLP, in Fort Worth, Texas, said the lender has already been paid in full and it is "no longer necessary to request the continued use of cash." About JEH Company JEH Company, JEH Stallion Station, Inc., and JEH Leasing Company, Inc. filed bare-bones Chapter 11 petitions (Bankr. N.D. Tex. Case Nos. 13-42397 to 13-42399) in Ft. Worth, Texas on May 22, 2013. Mark Joseph Petrocchi, Esq., at Griffith, Jay & Michel, LLP, in Ft. Worth, serves as counsel to the Debtors. JEH Company was organized in 1982 by Jim and Marilyn Helzer. According to http://www.jehroofingcompany.com/,JEHCO buys roofing material directly from the manufacturer and sell it to contractors, builders, and homeowners. JEH Leasing owns and leases equipment and vehicles primarily for use in the business of JEHCO. Stallion is in the quarter horse and thoroughbred horse business. In its schedules, JEH Company disclosed $13,606,753 and $18,351,290 in liabilities as of the Petition Date. JEH Stallion Station, Inc., disclosed $364,007 in assets and $3,982,012 in liabilities. JEH Leasing Company, Inc., disclosed $1,242,187 in assets and $155,216 in liabilities. JUNIPER GENERATION: Fitch Affirms BB+ Rating on $206MM Sec. Notes ----------------------------------------------------------------- Fitch Ratings has affirmed Juniper Generation, LLC's $206 million ($4.23 million outstanding) senior secured notes due December 2014 at 'BB+'. The Rating Outlook remains Stable. The rating affirmation is based upon Fitch's view that Juniper is likely to generate adequate cash flow to meet its final scheduled debt service payment without drawing on its debt service reserve backed by a letter of credit equal to six months of debt service. KEY RATING DRIVERS Revenue Risk: Weaker Revenues are fully contracted with capacity and energy payments from investment grade utility offtaker, Pacific Gas and Electric (PG&E, IDR 'BBB+' with a Stable Outlook). Exposure to fluctuations in power pricing is mitigated by established heat rates under the short run avoided cost (SRAC) formula. The project, however, remains exposed to fluctuations in gas prices, which also affect the power prices. Amid an environment of continuing low gas prices, dispatch can be reduced to minimize negative margins. Operating Risk: Midrange Operating performance has been generally adequate as Juniper has met offtaker requirements to be available during peak periods (May-October). Some of the plants, however, have experienced intermittent extended forced outages from 2011 through 2014 outside peak month periods. Decline in portfolio diversification exacerbates the project's exposure to event risks such as forced outages. Supply Risk: Midrange The plants are able to secure adequate fuel supply at market price. Debt Structure: Midrange The fixed-rate, fully amortizing debt is a typical project financing structure. The declining debt profile mitigates fewer assets remaining in the portfolio. Financial Results Fitch projects a 2014 debt service coverage ratio (DSCR) of 1.46x under Fitch's base case expectations and 1.19x under Fitch's rating case financial scenario of low power prices and higher operating costs. The 2014 projected rating case DSCR is low for the current rating level but sufficient to meet the last debt service payment. Peer Comparison Juniper's DSCR profile is similar to Lea Power ('BB+', Outlook Stable) but Juniper is exposed to market price risk while Lea Power has been challenged to control its cost profile. CE Gen ('BB-', Outlook Negative) is exposed to market pricing like Juniper but CE Gen's lower rating is attributable to its structural subordination to project-level debt, resulting in DSCRs that are lower than Juniper's. RATING SENSITIVITIES Negative - Severely Weakened Operations: An extended forced outage that compromises the ability to meet the final payment could lead to a downgrade but is mitigated by the availability of the debt service reserve. Positive: A rating upgrade is unlikely. CREDIT UPDATE Of the nine assets that originally formed the Juniper Generation portfolio, only Bear Mountain and Corona remain. As expected, individual plants have been removed from the note's collateral as their respective PPAs expired. These projects no longer contribute equity distributions to service Juniper's debt obligations. Support for Juniper's debt is also derived from equity distributions from the WCAC operating company, which provides operations and maintenance services to Juniper's assets. Bear Mountain's 2013 performance was low compared to historical performance with availability and capacity factors at 62.3% and 55%, respectively. Bear Mountain's availability and capacity factors through May 2014 improved to 91% and 76.8% respectively. Bear Mountain's output was affected by management reducing dispatch amid low power prices as well as timing of equipment deliveries and needed repairs. In November 2012, Bear Mountain incurred an outage due to power turbine bearing failure, returning to service in April 2013. Since the plant was not ordered to be dispatched during this time, Bear Mountain received its full capacity payments from PG&E. In 2014, the operator repaired a transformer at Bear Mountain ending a one-month outage in February. The June 2014 DSCR was 1.43x and the annual 2013 senior DSCR was 1.44x, lower than the 2012 level of 1.58x. Solid DSCR coverage in the first half of 2014 (1H'14) and 2013 is mainly attributable to distributions from the WCAC operating company, Bear Mountain achieving full capacity payments despite outages, and management's flexibility to minimize dispatch during uneconomic, low-power price periods. Fitch expects Juniper to generate sufficient cash flow through the remainder of the year to meet its final debt service payment and retire the rated debt. Juniper is a special purpose company created solely to issue the secured notes and hold a portfolio of equity interests in nine gas-fired cogeneration plants and two service companies. The facilities, located in southern California, sell energy and capacity to PG&E and Southern California Edison (SCE; IDR 'A-' with a Stable Outlook) under PPAs expiring through 2018. There is no debt at the individual projects' level. KEHE DISTRIBUTORS: S&P Lowers CCR to 'B' on Leveraged Acquisition ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Romeoville, Ill.-based KeHE Distributors Holdings LLC (KeHE) to 'B' from 'B+'. The outlook is stable. "At the same time we lowered our issue-level rating on the company's $200 million second-lien notes due 2021 to 'B-' from 'B'. KeHE is the parent company of KeHE Distributors LLC and KeHE Finance Corp., which are co-issuers of the second-lien notes. The '5' recovery rating is unchanged and reflects our expectation for modest (10%-30%) recovery in the event of a payment default," S&P said. S&P also assigned a 'BB-' issue-level rating to KeHE's $400 million ABL revolving credit facility with a '1' recovery rating, indicating S&P's expectation for very high (90%-100%) recovery in the event of a payment default. The company will finance the entire transaction by drawing under its revolver. The ABL has been upsized to $400 million from $300 million and its maturity remains unchanged from 2018. The acquisition and increase to the ABL are permitted under the company's existing note indenture. "The downgrade reflects our expectation that KeHE's credit protection measures will be weaker than previously anticipated over the next two years as a result of the incurrence of additional debt to finance the acquisition of Nature's Best," said credit analyst Kristina Koltunicki. "We believe the acquisition will broaden KeHE's geographic presence and strengthen its market position as the second-largest specialty and natural and organic (N&O) distributor, behind United Natural Foods Inc. (not rated). However, the acquisition will double the company's reported debt, leading to a moderate increase in leverage for at least the next year." The stable outlook reflects S&P's expectations that KeHE's leverage will be above 5.0x for the next 12 months, mainly because of increased debt associated with the Nature's Best acquisition. S&P expects the positive fundamentals of the specialty segment of grocery wholesale distribution to continue over the next year and for credit protection measures to improve modestly. Downside Scenario S&P could lower its ratings over the next year if operating performance is weaker than expected as a result of merger integration, or significant customer attrition or greater profitability pressure because of competition or shift to lower margin products. A downgrade could occur if total debt to EBITDA approaches 7.5x, which could result from a 75-basis-point (bp) decline in gross margin holding our revenue assumptions constant. A lower rating could also result from more aggressive financial policy to fund acquisition or shareholder returns with debt. Upside Scenario Although unlikely over the next 12 months given S&P's projections, an upgrade could result if operating performance is significantly better than expected such that total debt to EBITDA approaches 5.0x and FFO/debt is more than 12%. This could occur if gross margin improves 200 bps over our forecast. One such scenario for an upgrade would be if the company dedicates more of its cash flow to debt reduction than S&P currently assumes. KIDS BRANDS: Hires Lowenstein Sandler as Counsel ------------------------------------------------ Kids Brands, Inc. and its debtor-affiliates seek authorization from the U.S. Bankruptcy Court for the District of New Jersey to employ Lowenstein Sandler LLP as counsel, effective as of the June 18, 2014 petition date. The professional services the Debtors anticipate Lowenstein Sandler will render include, but are not limited to: (a) providing the Debtors with advice and preparing all necessary documents regarding debt restructuring, bankruptcy and asset dispositions; (b) taking all necessary actions to protect and preserve the Debtors' estates during the pendency of these Chapter 11 Cases, including the prosecution of actions on the Debtors' behalf, the defense of actions commenced against the Debtors' negotiations concerning litigation in which the Debtors are involved and objecting to claims filed against the estates; (c) preparing on behalf of the Debtors, as debtors-in- possession, all necessary motions, applications, answers, orders, reports and papers in connection with the administration of these Chapter 11 Cases; (d) counseling the Debtors with regard to their rights and obligations as debtors-in-possession; (e) appearing in Court to protect the interests of the Debtors; and (f) performing all other legal services for the Debtors which may be necessary and proper in these proceedings and in furtherance of the Debtors' operations. Lowenstein Sandler will be paid at these hourly rates: Partners $500-$985 Sr. Counsel and Counsel $385-$685 Associates $275-$480 Paralegals and Legal Assistants $160-$270 Lowenstein Sandler will also be reimbursed for reasonable out-of- pocket expenses incurred. Lowenstein Sandler was retained in June 2014 to represent the Debtors in these Chapter 11 Cases. Lowenstein Sandler was paid a retainer of $450,000 for its prepetition services in connection with the Chapter 11 Cases. In June 2014, in connection with its retention as restructuring counsel to the Debtors, Lowenstein Sandler agreed to waive approximately $214,851.31 of fees for legal services rendered through May 21, 2014, in connection with general corporate and litigation matters on which Lowenstein Sandler had previously advised the Debtors. S. Jason Teele, partner of Lowenstein Sandler, 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 District of New Jersey will hold a hearing on the application on Jul. 24, 2014, at 10:00 a.m. Objections were due Jul. 17, 2014. The Executive Office for United States Trustees recently adopted new Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under 11 U.S.C. Sec. 330 by Attorneys in Larger Chapter 11 Cases -- so-called Appendix B Guidelines. The Debtors and Lowenstein Sandler intend to make a reasonable effort to comply with the U.S. Trustee's requests for information and additional disclosures as set forth in the Appendix B Guidelines both in connection with this application and the interim and final fee applications to be filed by Lowenstein Sandler in the course of its engagement. It is the Debtors' and Lowenstein Sandler's intention to work cooperatively with the U.S. Trustee Program to address the concerns that prompted the EOUST to adopt the Appendix B Guidelines; however, in doing so, the Debtors and Lowenstein Sandler reserve all rights as to the relevance and substantive legal effect of the Appendix B Guidelines in respect of any application for employment or compensation in these cases that falls within the ambit of the Appendix B Guidelines. Lowenstein Sandler can be reached at: S. Jason Teele, Esq. LOWENSTEIN SANDLER LLP 65 Livingston Avenue Roseland, NJ 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 About Kid Brands Based in Rutherford, New Jersey, Kid Brands, Inc., is a designer, importer, marketer, and distributor of infant and juvenile consumer products. Its operating subsidiaries consist of Kids Line, LLC, CoCaLo, Inc., Sassy, Inc., and LaJobi, Inc. Providing "everything but the baby" for a child's nursery, the company sells infant bedding and accessories under the Kids Line and CoCaLo brands; nursery furniture under the LaJobi brand; and baby care items under the Kokopax and Sassy brands. Citing their inability to raise capital due to contingent liabilities and operational issues, Kid Brands and six of its U.S. subsidiaries each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. N.J. Lead Case No. 14-22582) on June 18, 2014. To preserve the value of their assets, the Debtors are pursuing a sale of the assets pursuant to section 363 of the Bankruptcy Code. As of April 30, 2014, the Debtors had $32.40 million in total assets and $109.1 million in total liabilities. As of the Petition Date, unsecured debts totaled $54 million. Judge Donald H. Steckroth oversees the cases. The Debtors have sought and obtained an order directing joint administration of their Chapter 11 cases. Lowenstein Sandler LLP serves as the Debtors' counsel. PricewaterhouseCoopers LLP is the Debtors' financial advisor. GRL Capital Advisors acts as the Debtors' restructuring advisors. Rust Consulting/Omni Bankruptcy is the Debtors' claims and noticing agent. KIOR INC: Biofuel Maker Misses Payments, Looks for Buyer -------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Kior Inc., a producer of motor fuel from plant material, failed to make a $1.88 million loan payment on June 30 and hired financial advisers to help with a restructuring or sale. According to the report, the Pasadena, Texas-based company signed a forbearance agreement with the state of Mississippi, whose state-sponsored loan went into default. KOSMOS ENERGY: Fitch Assigns 'B' Issuer Default Rating ------------------------------------------------------ Fitch Ratings has assigned US-based Kosmos Energy Ltd. (KOS) a Long-term Issuer Default Rating (IDR) of 'B'. The Outlook is Stable. Fitch has also assigned the company's proposed issue of a senior secured bond an expected rating of 'B(EXP)'/'RR4' . A final bond rating will be assigned upon receipt of completed bond documentation. KOS is a small but growing oil and gas exploration and production company focused on the offshore Atlantic margin with 2013 net production of 23 thousand barrels per day (mbpd) from the offshore Jubilee field in Ghana (B/Negative). The Jubilee field itself, in which the company has a 24.1% working interest, produces around 100mbpd. In 2013 KOS generated USD645m in EBITDAX (EBITDA before exploration expenses). KOS's rating and Outlook are supported by its developed producing asset base at Jubilee, fairly low production costs of around USD10 per barrel, competitive full-cycle development costs compared with similarly sized peers and conservative leverage. The rating is constrained, however, by the company's small upstream-focused operating scale and low diversification. KEY RATING DRIVERS Business Scale Determines Ratings KOS's scale of operations and limited geographical diversification are dominant drivers of the company's 'B' ratings. Its business profile is constrained by its limited market share relative to other upstream exploration and production peers. KOS intends to boost production by developing two sites in close proximity to the Jubliee field, TEN (Tweneboa, Enyenra, Ntomme) and MTA (Mahogany, Teak, Akasa), but this is unlikely to dramatically change the company's industry position in the medium term. We now assume KOS's net production will not significantly exceed 40mbpd over the next three to five years. KOS's closest Fitch- rated peers are China- and Kazakhstan-focused MIE Holdings (B/Stable, 2013 production: 15 thousand barrels of oil equivalent per day (mboepd)), Nigeria- and Kurdistan-focused Afren plc (B+/Stable; 47mboepd), and US-based Energy XXI Gulf Coast (Delaware) (EXXI Gulf Coast; B/Stable; pro-forma for acquired assets: 65mboepd). Concentrated Production KOS's production remains highly concentrated in offshore Ghana. Jubilee now accounts for 100% of KOS's total production and booked reserve base. At end-2013 KOS had proved oil and gas reserves of 47 million barrels (mmboe), which translates into reserve life of six years; lower than that of MIE Holdings (15 years) and Afren (nine years). However, Fitch estimates it should increase to around nine years and will be on a par with that of Afren once KOS has booked the TEN development reserves. Fitch believes that Ghana is likely to dominate KOS's output in the medium term despite other exploration projects currently underway off the coast of west Africa. The concentration in Ghana and the company's current reliance on the Jubilee field expose KOS to elevated geological risks, as well as legal, political and tax risks, in our view. Elevated Country Risks KOS is exposed to elevated country risks, as its operations are concentrated in Ghana. Ghana has a strong business environment relative to that of other African countries, ranking 67 out of 189 in the World Bank's Doing Business Survey. Also, it is safer compared with some other parts of Africa such as the Niger Delta, with local groups often attacking companies in the area leading to interrupted production, and oil theft. However, the country's public finances are weak. Fitch expects that the tax regime for oil companies in Ghana will not change over the medium term, and KOS's tax burden will not materially increase; however, this possibility cannot be ruled out due to Ghana's high budget deficit. Fitch also assumes that KOS's operations would not necessarily be affected by capital controls or other possible restrictive measures, since the company's proceeds do not flow through Ghana, and its cash assets are kept primarily outside Ghana. Fitch therefore do not cap KOS's rating at the sovereign rating or the Country Ceiling. However, Fitch may review this approach if the government attempts to revise the tax regime in Ghana. Substantive Exploration Portfolio KOS has a wide exploration portfolio, including several licence blocks in offshore west Africa, Suriname and Ireland. This should help KOS's replenishment of its reserves, given its fairly low proved reserve life compared with other emerging market peers. However, the company's exploration budget (around USD500m in 2014- 2016) may put a strain on its free cash flow, while the upside from these investments is not guaranteed. A failure to translate exploration spending into increased proved reserves could negatively affect the ratings. Conservative Mid-Cycle Leverage Fitch expects KOS's leverage will increase over the next two years as its operating cash flows decrease because of rising cash taxes and capital intensity. Based on Fitch's conservative assumptions Fitch expects the company's funds from operations (FFO) adjusted net leverage to fluctuate around 2x-2.5x, compared with 1.1x in 2013. This is comparable to mid-cycle leverage of its peers such as Afren (2.0x), EXXI Gulf Coast (2.1x), MIE Holdings (2.5x) and Newfield Exploration Company (BB+/Stable; 2.0x). Fitch also believes KOS will continue to be free cash flow (FCF)-negative until at least 2016-2017. Fitch do not expect KOS to pay any dividends in the medium term, as per its dividend policy. LIQUIDITY AND DEBT STRUCTURE Strong Liquidity At March 31, 2014, KOS's liquidity position was strong. The company had no short-term debt, and available cash of USD528m. Additional liquidity support is also available in the company's USD1.5bn reserve base lending facility (RBF; USD700m undrawn) and its undrawn USD300m revolving credit facility. Upcoming Notes Rated 'B' The proposed notes are subordinated to KOS's USD1.5bn RBF; however, we do not notch down the rating of the notes from the company's IDR given its fairly strong recovery prospects. At March 31, 2014, the amount outstanding under the RBF was USD800m, and we do not expect it to exceed USD1bn. Moreover, during financial distress KOS would not be able to draw down additional funds under the facility as the available borrowing base is reconsidered at least twice a year, and may be reassessed at the request of the lender. Fitch may, however, notch down the upcoming notes' rating if the balance under the prior-ranking RBF exceeds USD1bn. RATING SENSITIVINESS Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- Improvement to the upstream business profile (e.g. net production of at least 40mbpd per day) -- Enhanced asset quality (e.g. proved reserve life above nine years) -- Extremely conservative financial profile given the company's small scale (e.g. FFO adjusted net leverage consistently below 2x) -- Positive FCF on a sustained basis -- Organic reserve replacement ratio sustainably above 100% Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- Significant project delays and cost overruns at the TEN and MTA blocks -- Exploration and development expenditure failing to produce a rising reserve base -- Deterioration in liquidity (e.g. cash and credit lines amounting to less than 50% of short-term debt) -- Leverage rising above expectations (e.g. consistently above 3.5x), which would be a distress signal for a company of this size -- Unfavourable tax changes having a direct impact on KOS's cash generating ability -- Organic reserve replacement ratio significantly below 100% KUAKINI HEALTH: S&P Revises Outlook & Affirms 'BB+' Rating ---------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook to negative from stable and affirmed its 'BB+' long-term rating on the Hawaii State Department of Budget and Finance's special purpose revenue bonds, issued on behalf of the Kuakini Health System (Kuakini), which operates facilities on the island of Oahu. "The negative outlook reflects our view of Kuakini's persistent operating losses, which have increased through the first three quarters of fiscal 2014," said Standard & Poor's credit analyst Geraldine Poon. "Management indicates declining inpatient volumes are the main driver of the operating losses," Ms. Poon added. Founded in 1900 as the Japanese Charity Hospital in Oahu, Hawaii, Kuakini Health System has grown to include a medical center, a geriatric care center, and several other operations. Due to Kuakini's focus on the elderly population, Medicare represents roughly 75% of admissions. LAKEHEAD MARINE: Files for Bankruptcy in Ontario ------------------------------------------------ Lakehead Marine & Industrial Inc., commenced bankruptcy proceedings on July 3, 2014. A first meeting of its creditors was held in the afternoon of July 16 at the Italian Cultural Centre, at 132 S Algoma Street, Thunder Bay, Ontario, P7B 3B8. The Trustee of the estate may be reached at: Ernst & Young Inc. Ernst & Young Tower Toronto-Dominion Centre PO Box 251, 222 Bay Street Toronto, ON M5K 1J7 Contact: Marie Jackson Tel: 1-855-943-4472 Fax: 416-943-3300 LATEX FOAM: Files Schedules of Assets and Liabilities ----------------------------------------------------- Latex Foam International, LLC filed on July 2, 2014, with the U.S. Bankruptcy Court for the District of Connecticut its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $18,437,185 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $18,970,083 E. Creditors Holding Unsecured Priority Claims $104,156 F. Creditors Holding Unsecured Non-Priority Claims $11,268,687 ----------- ----------- Total $18,437,185 $30,342,926 A copy of the schedules is available for free at: http://bankrupt.com/misc/LATEXFOAM_88_sal.pdf The Court scheduled a hearing for July 15, 2014, to consider the second motion dated June 26, to extend the Debtors' time to file statement of financial affairs, and statistical summary of schedules summary of schedules. The Court previously extended until June 26 the Debtors' time to file their statement of financial affairs, and statistical summary of schedules summary of schedules. In their June 13 motion, the Debtors requested for extension to file their statements and schedules. Shelton 2009 Lease Rejected The Bankruptcy Court granted on July 7, 2014, Latex Foam International, LLC, et al.'s amended motion for authorization to reject a lease between the Debtors and Shelton 2009, LLC, as successor-in-interest of First Treetops Limited Partnership effective June 30, 2014. According to the Debtors, on June 29, 2005, the Debtor entered into a lease which was amended on Nov. 1, 2008, with FTLP under which FTLP agreed to lease certain real property to the Debtor known as 12 Commerce Lane Shelton, Connecticut. The Debtors concluded that the lease is not necessary to its reorganization and that rejection of the lease is in the Debtor's best interest, well as the best interests of its creditors, equity security holders and other parties-in-interest. The Court held hearing on the matter on June 26. The Court also ordered that proofs of claim for damages relating to the rejection of the lease will be filed within 60 days from the entry of the order or Sept. 29. Shelton 2009, in its limited objection, stated that the Debtors must perform on a lease until it is rejected, and must continue making payments on the lease until the Court enters an order rejecting the lease. In a separate docket entry, the Court scheduled a hearing on July 22, at 10:00 a.m., to consider the motion of Debtor Pure Latex Bliss, LLC, to authorize the rejection of its lease of commercial real estate with IHFC Properties, LLC. According to Pure Latex, on March 21, 2012, it entered into a lease with IHFC under which IHFC agreed to lease Space No M528 including bays M521, M522, M523, M524, M525, M526 in the International Home Furnishings Center, High Point, North Carolina to the Debtor. The Debtor will have vacated the leased premises by July 31, 2014. The Debtor concluded that the lease is not necessary to its reorganization. About Latex Foam Headquartered in Shelton, Connecticut, Latex Foam International, LLC manufactures foam mattresses and component mattresses. The 196-employee company produces mattress cores, toppers, and pillow buns utilizing both the Talaway and Dunlop manufacturing processes. LFIH is a holding company for 100% of the equity interests in LFI, PLB, and an inactive entity, Dunlop Latex Foam (Malaysia) SDN. BHD. LFI and four affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Conn. Lead Case No. 14-50845) in Bridgeport, Connecticut, on May 30, 2014. David Fisher signed the petitions as president. The Debtors are seeking joint administration of their cases. LFI disclosed $18,437,185 in assets and $30,342,926 in liabilities as of the Chapter 11 filing. Judge Alan H.W. Shiff presides over the cases. James Berman, Esq., and Craig I. Lifland, Esq., at Zeisler and Zeisler, serve as the Debtors' counsel. On June 19, 2014, the U.S. Trustee appointed five creditors to serve on the Official Committee of Unsecured Creditors. The Committee tapped to retain Schafer and Weiner, PLLC as its counsel, and Reid and Reige, P.C. as its local counsel. LATEX FOAM: July 29 Hearing on Duff & Phelps as Investment Banker ----------------------------------------------------------------- The Bankruptcy Court will convene a hearing on July 29, 2014, at 10:00 a.m., to consider Latex Foam International, LLC, et al.'s motion to employ Duff & Phelps Securities, L.L.C. as investment banker. The Court has held a hearing on June 26 on the matter. Duff & Phelps will provide investment banking services to the Debtors in connection with a potential financing transaction, merger and acquisition transaction or restructuring transaction. Specifically, Duff & Phelps, among other things: a. familiarize itself to the extent it deems appropriate with the business, operations, financial condition and prospects of the Debtors; b. assist the Debtors' management in (i) developing a strategy for pursuing the transactions, (ii) prepare a descriptive memorandum that describes the Debtors' operations and financial condition and includes current financial data and other appropriate information furnished by the Debtors and (iii) contacting and eliciting interest from those possible participants expressly approved by the Debtors; and c. participate with the Debtors and their counsel in negotiations relating to the transactions, assist or participate in negotiations with parties-in-interest, including, without limitation, any current or prospective creditors of, holders of equity in, or claimants against the Debtors and their respective representatives in connection with the transactions. The terms of Duff & Phelps' retention and compensation includes: 1. a consulting fee in the amount of $25,000 on the date the engagement agreement is executed and $25,000 on the conclusion of each of the next four 30 days periods thereafter; and 2. upon the consummation of any transaction, the Company will pay D&P a cash fee (the transaction fee) equal to: $750,000, plus six percent of the consideration involved in a Transaction that exceeds 16 million dollars, payable in cash concurrently with closing of the transaction, subject to court approval; In addition, the Debtors will reimburse Duff & Phelps for all out- of-pocket expenses reasonably incurred, provided that the total expenses will not exceed $50,000, will be paid from the proceeds of a transaction. According to the Debtors, as a result of prepetition work performed for the Debtors, Duff & Phelps had a claim against the Debtors in the amount of $75,000. Duff & Phelps has since agreed to waive the prepetition unsecured claim against the Debtors. To the best of the Debtors' knowledge, Duff & Phelps is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Latex Foam Headquartered in Shelton, Connecticut, Latex Foam International, LLC manufactures foam mattresses and component mattresses. The 196-employee company produces mattress cores, toppers, and pillow buns utilizing both the Talaway and Dunlop manufacturing processes. LFIH is a holding company for 100% of the equity interests in LFI, PLB, and an inactive entity, Dunlop Latex Foam (Malaysia) SDN. BHD. LFI and four affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Conn. Lead Case No. 14-50845) in Bridgeport, Connecticut, on May 30, 2014. David Fisher signed the petitions as president. The Debtors are seeking joint administration of their cases. LFI disclosed $18,437,185 in assets and $30,342,926 in liabilities as of the Chapter 11 filing. Judge Alan H.W. Shiff presides over the cases. James Berman, Esq., and Craig I. Lifland, Esq., at Zeisler and Zeisler, serve as the Debtors' counsel. On June 19, 2014, the U.S. Trustee appointed five creditors to serve on the Official Committee of Unsecured Creditors. The Committee tapped to retain Schafer and Weiner, PLLC as its counsel, and Reid and Reige, P.C. as its local counsel. LATEX FOAM: Taps St. Onge Steward Johnston as IP Counsel -------------------------------------------------------- The Bankruptcy Court will convene a hearing on July 29, 2014, at 10:00 a.m., to consider Latex Foam International, LLC, et al.'s motion to employ St. Onge Steward Johnston & Reens LLC special intellectual property counsel. Prior to the Petition Date, the Debtors retained the services of SSJR which maintains an office for the practice of law at 986 Bedford Street, Stamford, Connecticut, relating to protecting and managing all of the Debtors' intellectual properties, including all U.S. and foreign patent, trademark, copyright and domain matters. The Debtors have asked SSJR to continue to represent them in such matters. SSJR accrued approximately $49,897 of billed fees and a certain amount of unbilled fees and disbursements for services rendered before the Petition Date. To the best of the Debtors' knowledge, SSJR has no interest materially adverse to the Debtors or to their estates. About Latex Foam Headquartered in Shelton, Connecticut, Latex Foam International, LLC manufactures foam mattresses and component mattresses. The 196-employee company produces mattress cores, toppers, and pillow buns utilizing both the Talaway and Dunlop manufacturing processes. LFIH is a holding company for 100% of the equity interests in LFI, PLB, and an inactive entity, Dunlop Latex Foam (Malaysia) SDN. BHD. LFI and four affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Conn. Lead Case No. 14-50845) in Bridgeport, Connecticut, on May 30, 2014. David Fisher signed the petitions as president. The Debtors are seeking joint administration of their cases. LFI disclosed $18,437,185 in assets and $30,342,926 in liabilities as of the Chapter 11 filing. Judge Alan H.W. Shiff presides over the cases. James Berman, Esq., and Craig I. Lifland, Esq., at Zeisler and Zeisler, serve as the Debtors' counsel. On June 19, 2014, the U.S. Trustee appointed five creditors to serve on the Official Committee of Unsecured Creditors. The Committee tapped to retain Schafer and Weiner, PLLC as its counsel, and Reid and Reige, P.C. as its local counsel. LATEX FOAM: Zeisler & Zeisler Approved as General Legal Counsel --------------------------------------------------------------- The Bankruptcy Court authorized Latex Foam International, LLC, et al., to employ Zeisler & Zeisler, P.C. as counsel. As reported in the Troubled Company Reporter on June 6, 2014, Z&Z will render general legal services to the Debtor as needed throughout the course of the Chapter 11 case, including litigation and bankruptcy assistance and advice. Z&Z will charge the Debtor for its legal services on an hourly basis in accordance with its ordinary and customary hourly rates in effect on the date services are rendered. The Debtor has provided Z&Z with a $75,000 retainer. James Berman, Esq., a principal at the firm, attests that Z&Z represents no interest adverse to the Debtor or to its estate in the matters for which it is proposed to be retained. The firm can be reached at: James Berman, Esq. Craig Lifland, Esq. ZEISLER & ZEISLER, P.C. 10 Middle Street, 15th Floor Bridgeport, CT 06604 Tel: (203) 368-4234 Fax: (203) 367-9678 About Latex Foam Headquartered in Shelton, Connecticut, Latex Foam International, LLC manufactures foam mattresses and component mattresses. The 196-employee company produces mattress cores, toppers, and pillow buns utilizing both the Talaway and Dunlop manufacturing processes. LFIH is a holding company for 100% of the equity interests in LFI, PLB, and an inactive entity, Dunlop Latex Foam (Malaysia) SDN. BHD. LFI and four affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Conn. Lead Case No. 14-50845) in Bridgeport, Connecticut, on May 30, 2014. David Fisher signed the petitions as president. The Debtors are seeking joint administration of their cases. LFI disclosed $18,437,185 in assets and $30,342,926 in liabilities as of the Chapter 11 filing. Judge Alan H.W. Shiff presides over the cases. James Berman, Esq., and Craig I. Lifland, Esq., at Zeisler and Zeisler, serve as the Debtors' counsel. On June 19, 2014, the U.S. Trustee appointed five creditors to serve on the Official Committee of Unsecured Creditors. The Committee tapped to retain Schafer and Weiner, PLLC as its counsel, and Reid and Reige, P.C. as its local counsel. LEHI ROLLER MILLS: Utah Judge Confirms Liquidating Plan ------------------------------------------------------- Lehi Roller Mills Co., Inc., now known as LRM Liquidation, Inc., after assets were sold, won confirmation if its Chapter 11 Plan at a hearing on July 17, 2014 at 10:00 a.m. in bankruptcy court in Salt Lake City, Utah. The Plan was filed March 26, 2014. A copy of the FINDINGS AND CONCLUSIONS REGARDING CONFIRMATION OF DEBTOR'S CHAPTER 11 PLAN issued by Utah Bankruptcy Judge R. Kimball Mosier dated July 17 is available at http://is.gd/nhKQH3 from Leagle.com. Judge Mosier on Aug. 20, 2013, approved the sale of Lehi Roller Mills' assets assets for $4.68 million to KEB Enterprises, a holding company headed by Kenneth E. Brailsford, a former top executive at several Utah-based multilevel marketing companies including Nature's Sunshine Products and Enrich International. Steven Oberbeck, writing for The Salt Lake Tribune, reported at that time that Mr. Brailsford said he intends to continue to operate the company with the goal of "getting its sales back up and turning it into a profitable enterprise." According to the Salt Lake Tribune, Mark Hashimoto, who was appointed by the U.S. Bankruptcy Court as chief restructuring officer for the mill, said the sale to KEB offers the best chance for the company's unsecured creditors, who are owed approximately $7 million, to receive a partial payment on what they are owned. About Lehi Roller Mills Lehi Roller Mills Co., Inc., filed for Chapter 11 bankruptcy (Bankr. D. Utah Case No. 12-35291) on Dec. 6, 2012, estimating under $50,000 in both assets and liabilities. Judge R. Kimball Mosier oversees the case. George B. Hofmann, Esq., and the law firm Parsons Kinghorn Harris, P.C., serves as the Debtor's general bankruptcy counsel. Lehi Roller Mills sold a variety of retail products. But the majority of the company's sales of wheat and flour were to commercial customers. LONGVIEW POWER: Slowed by First American Title Lawsuit ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Longview Power LLC, the owner of a faulty power plant, can't expect to emerge from Chapter 11 reorganization until year's end at the earliest, saying the bankruptcy judge in Delaware can't approve the company reorganization plan unless it wins at the trial in a lawsuit against First American Title Insurance Co. According to the report, Longview called off a plan confirmation hearing that had been scheduled for Sept. 3 until a date and time to be determined. The lawsuit against First American involves title-insurance policy that Longview wants to use to pay claims of contractors Siemens Energy Inc. and Kvaerner North America Construction Inc., if they are found to have valid mechanics' liens. About Longview Power LLC Longview Power LLC is a special purpose entity created to construct, own, and operate a 695 MW supercritical pulverized coal-fired power plant located in Maidsville, West Virginia, just south of the Pennsylvania border and approximately 70 miles south of Pittsburgh. The project is owned 92% by First Reserve Corporation (First Reserve or sponsor), a private equity firm specializing in energy industry investments, through its affiliate GenPower Holdings (Delaware), L.P., and 8% by minority interests. Longview Power, LLC, filed a Chapter 11 (Bank. D. Del. Lead Case. 13-12211) on Aug. 30, 2013. The petitions were signed by Jeffery L. Keffer, the Company's chief executive officer, president, treasurer and secretary. The Debtor estimated assets and debts of more than $1 billion. Judge Brendan Linehan Shannon presides over the case. Kirkland & Ellis LLP and Richards, Layton & Finger, P.A., serve as the Debtors' counsel. Lazard Freres & Company LLC acts as the Debtors' investment bankers. Alvarez & Marsal North America, LLC, is the Debtors' restructuring advisors. Ernst & Young serves as the Debtors' accountants. The Debtors' claims agent is Donlin, Recano & Co. Inc. The Debtor disclosed assets of $1,717,906,595 plus undisclosed amounts and liabilities of $1,075,748,155 plus undisclosed amounts. Roberta A. DeAngelis, U.S. Trustee for Region 3, disclosed that as of September 11, 2013, a committee of unsecured creditors has not been appointed in the case due to insufficient response to the U.S. Trustee's communication/contact for service on the committee. M.V. JADRAN: "Captain John's" Ship to Be Sold July 31 in Toronto ---------------------------------------------------------------- M.V. "Jadran", also known as "Captain John's" will be sold by judicial sale by way of sealed bid auction on July 31, 2014, at 2:00 p.m. Eastern Daylight Savings time in the Toronto Registry Office of the Federal Court, 180 Queen Street West, Toronto, Ontario M5V 3L6. Bids are due July 31 no later than 9:00 a.m. The sale is "as-is, where-is". The vessel is a former passenger vessel (no engines), 84.37 metres in length, 13.08 metres in breadth, 6.19 draft, estimated light displacement of 2650 tonnes, built in Yugoslavia in 1957, Port of Registry at Toronto and IMO Ship No. 370427. The vessel is currently under arrest and located at 1 Queen's Quay West in Toronto, sometimes also known as the Yonge Street Slip. The sale is subject to approval of the Federal Court. For more information, contact: Angus Armstrong Harbour Master Toronto Port Authority Tel: 416-462-3304 E-mail: aarmstrong@torontoport.com Web site: http://www.torontoport.com/ - or - Aylmer Gribble Acting Sheriff Federal Court of Canada Gibson Canadian and Global Agency Inc. Tel: 514-933-7371 Fax: 514-937-1774 E-mail: gribble@gibson.ca M&S HOSPITALITY: Case Summary & 8 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: M&S Hospitality, LLC dba Red Carpet Inn 6953 NC Highway 4 Battleboro, NC 27809 Case No.: 14-04147 Chapter 11 Petition Date: July 18, 2014 Court: United States Bankruptcy Court Eastern District of North Carolina (Raleigh Division) Judge: Hon. David M. Warren Debtor's Counsel: Travis Sasser, Esq. SASSER LAW FIRM 2000 Regency Parkway, Suite 230 Cary, NC 27518 Tel: (919) 319-7400 Fax: (919) 657-7400 Email: tsasser@carybankruptcy.com Total Assets: $503,325 Total Liabilities: $1.18 million The petition was signed by Sarla Vyas, member-manager. A list of the Debtor's eight largest unsecured creditors is available for free at http://bankrupt.com/misc/nceb14-04147.pdf MF GLOBAL: Vacation Time Claims Granted Class Status ---------------------------------------------------- Former employees of MF Global Inc. filed a putative class claim for damages under the WARN Act and for unpaid accrued vacation time. Those same employees raised identical allegations in adversary proceedings filed against MFGI, as well as against MF Global Holdings Ltd., MF Global Finance USA, Inc., and MF Global Holdings USA, Inc. In two written opinions, the Court dismissed the WARN Act claims asserted in the adversary proceedings, but declined to decide the issue of liability for unpaid accrued vacation time. The SIPA Trustee, however, has conceded liability for the vacation pay claims. MFGI now objects to the class claim on the grounds that (1) the WARN Act claims are barred by the "law of the case" doctrine and (2) the claim for vacation pay is unnecessary and duplicative and does not meet the requirements for the assertion of a class claim. The class claimants concede that their WARN Act claims are barred by the Bankruptcy Court's prior opinions, and that portion of the Objection is sustained, Bankruptcy Judge Martin Glenn held in a ruling July 17. As to their claims for unpaid accrued vacation time, Judge Glenn said the putative class claim satisfies the requirements for class certification. Further, allowing the claim to proceed as a class claim will result in the most expeditious administration of the MFGI estate. Therefore, the Objection to the vacation pay portion of the claim is overruled, and the Class Claimants are directed to file a motion seeking class certification as soon as practicable. A copy of the Court's July 17, 2014 Memorandum Opinion and Order is available at http://is.gd/AugcCifrom Leagle.com. In another ruling issued on the same day, and available at http://is.gd/ECvKYYfrom Leagle.com, Judge Glenn sustained the Objection filed by MF Global Holdings Ltd. as Plan Administrator, which seeks an order disallowing and expunging proof of claim number 1793 filed by Charles A. Ercole, Esq., at Klehr Harrison Harvey Branzburg LLP, on behalf of the Plaintiffs in Adversary 11- 02880 (MG). Mr. Ercole filed the Holdings Class Claim on November 2, 2012. The stated basis for the Holdings Class Claim is: "Claims for WARN Act Violations as well as unpaid vacation time." The Claim was filed against "MF Global Finance LTD*" and references case number 11-5059, which does not correlate with any existing entity. Attached to the Holdings Class Claim is the following statement: "* This proof of claim is being filed in conjunction with the adversary seeking to recover both WARN Act damages, as well as unpaid wages and vacation pay as alleged in the adversary pending before this Court in 11-02880(MG). It is intended to be a claim against each of the following estates: MF Global Holdings Ltd. 11-15059 MF Global Finance USA Inc. 11-15058 MF Global Capital LLC 11-15808 MF Global Market Services 11-15810 MF Global FX Clear LLC 11-15810 MF Global Holdings USA 12-10863" Holdings objects to the WARN Act claim on the grounds that it is barred by res judicata since the Court dismissed that claim with prejudice in an August 23, 2013 decision. Holdings objects to the claim for unpaid accrued vacation time on the grounds that (1) it is also barred by res judicata and (2) the Class Claimants failed to state a claim because they did not provide evidence as to who their employer was. Attorneys for Todd Thielmann, et al. and Employee Representative Claimants: Charles A. Ercole, Esq. KLEHR HARRISON HARVEY BRANZBURG LLP 1835 Market Street, Suite 1400 Philadelphia, PA 19103 E-mail: cercole@klehr.com - and - Jack A. Raisner, Esq. OUTTEN & GOLDEN LLP 3 Park Avenue, 29th Floor New York, NY 10016 Counsel for James W. Giddens, Trustee for the SIPA Liquidation of MF Global Inc., is: Dustin P. Smith, Esq. HUGHES HUBBARD & REED LLP One Battery Park Plaza New York, NY 10004 E-mail: smithd@hugheshubbard.com 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. MICHIGAN COMMERCIAL: A.M. Best Lowers Then Withdraws B(fair) ICR ---------------------------------------------------------------- A.M. Best Co. has downgraded the financial strength rating to B (Fair) from B+ (Good) and the issuer credit rating to "bb" from "bbb-" of Michigan Commercial Insurance Mutual (MCIM) (Lansing, MI). The outlook for both ratings is negative. Concurrently, A.M. Best has withdrawn the ratings due to management's request to no longer participate in A.M. Best's interactive rating process. The rating actions resulted from the continued deterioration in MCIM's operating performance and risk-adjusted capitalization through the first quarter of 2014. Although management has taken actions to diversify its operations over the years, in more recent years, this expansion has resulted in a strain on the company's underwriting controls, has led to sizable underwriting losses and created the need for continuous reunderwriting actions. Despite significant corrective actions intended to improve financial performance, the company's operating results and capital position could continue to be strained over the mid-term, given expected restructuring expenses, challenging market conditions and the low interest rate environment. Additionally, the company remains exposed to the execution risk of recent remediation actions. The ratings consider the company's conservative investment allocations and the equity of the residual trust managed by MCIM and MCIM's role as the legal beneficiary of the trust. The equity in the trust will revert to MCIM upon satisfaction of all remaining claims obligations of the trust. MONARCH HOSPITALITY: Case Summary & 20 Top Unsecured Creditors -------------------------------------------------------------- Debtor: Monarch Hospitality, LLC dba Comfort Suites 2992 W. International Speedway Blvd. Daytona Beach, FL 32114 Case No.: 14-03489 Chapter 11 Petition Date: July 18, 2014 Court: United States Bankruptcy Court Middle District of Florida (Jacksonville) Debtor's Counsel: Justin M. Luna, Esq. LATHAM, SHUKER, EDEN & BEAUDINE, LLP P.O. Box 3353 Orlando, FL 32802-3353 Tel: (407) 481-5800 Fax: (407) 481-5801 Email: jluna@lseblaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Manilal R. Patel, managing member. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/flmb14-03489.pdf NATROL INC: Sec. 341 Creditors' Meeting Rescheduled to July 29 -------------------------------------------------------------- The meeting of creditors pursuant to 11 U.S.C. 341(a) in the Chapter 11 case of Natrol Inc. is rescheduled to July 29, 2014, at 10:00 a.m. (ET). Subsequently, the deadline to file a complaint to determine dischargeability of certain debts has been changed from September 21, 2014 to September 27. About Natrol, Inc. Headquartered in Chatsworth, Calif., Natrol, Inc. -- http://www.natrol.com-- is a wholly owned subsidiary of Plethico Pharmaceuticals Limited. Plethico Pharmaceuticals Limited (BSE: 532739. BO: PLETHICO) engages in the manufacturing, marketing and distribution of pharmaceutical and allied healthcare products around the world. Natrol products are made in the U.S. Established in 1980, Natrol, Inc. has been a global leader in the nutrition industry, and a trusted manufacturer and marketer of a superior quality of herbs and botanicals, multivitamins, specialty and sports nutrition supplements made to support health and wellness throughout all ages and stages of life. Natrol products are available in health food stores, drug and grocery stores, and mass-market retailers, and through Natrol.com and other online retailers. Natrol distributes products nationally through more than 54,000 retailers as well as internationally in over 40 other countries through distribution partners. Natrol, Inc., and its six affiliates sought bankruptcy protection on June 11, 2014 (Case No. 14-11446, Bankr. D. Del.). The case is assigned to Judge Brendan Linehan Shannon. The Debtors are represented by Robert A. Klyman, Esq., and Samuel A. Newman, Esq., at GIBSON, DUNN & CRUTCHER LLP, in Los Angeles, California; and Michael R. Nestor, Esq., Maris J. Kandestin, Esq., and Ian J. Bambrick, Esq., at YOUNG CONAWAY STARGATT & TAYLOR, LLP, in Wilmington, Delaware. The Debtors' Claims and Noticing Agent is EPIQ SYSTEMS INC. The U.S. Trustee for Region 3 on June 19 appointed five creditors of Natrol, Inc. to serve on the official committee of unsecured creditors. NETBANK INC: Supreme Court Wants FDIC Papers in Tax Refund Case --------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the U.S. Supreme Court has asked the Federal Deposit Insurance Corp. to file papers by Aug. 8 to take a position on whether the country's highest court should permit an appeal in the tax refund case involving NetBank Inc. According to the report, the FDIC has told the Supreme Court it was waiving the right to file papers in opposition to allowing an appeal. In NetBank's case, the U.S. Court of Appeals in Atlanta overturned a lower court decision awarding tax refunds to creditors. The NetBank case is Zucker v. Federal Deposit Insurance Corp., 13- 1480, U.S. Supreme Court (Washington). About NetBank Inc. Headquartered in Jacksonville, Florida, NetBank Inc. -- http://www.netbank.com/-- is a financial holding company of Netbank, the United States' oldest Internet bank serving retail and business customers in all 50 states. NetBank Inc. did retail banking, mortgage banking, business finance, and provided ATM and merchant processing services. The Company filed for chapter 11 protection (Bankr. M.D. Fla. Case No. 07-04295) on Sept. 28, 2007. Alan M. Weiss, Esq., at Holland & Knight LLP, represents the Debtor. Rogers Towers, Esq. at Kilpatrick Stockton LLP, represents the Official Committee of Unsecured Creditors. Clifford Zucker serves as the Liquidating Supervisor for NetBank under the terms of a Second Amended Liquidating Plan confirmed in Sept. 2008, and is represented by Michael D. Langford, Esq., and Shane G. Ramsey, Esq., at Kilpatrick Stockton LLP in Atlanta, Ga. As of Sept. 25, 2007, the Debtor reported total assets of $87,213,942 and total debts of $42,245,857. As of August 31, 2008, NetBank, Inc., had total assets of $13,807,207 and total liabilities of $34,607,868. NEW ENGLAND COMPOUNDING: Settlement Prompts Victim Objections ------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the the New England Compounding Pharmacy Inc. trustee fielded a raft of objections when he proposed a settlement under which the company's insurance providers would contribute about $100 million toward compensation for people who contracted fungal meningitis after being injected with NECP's tainted products. According to the report, lawyers for about 170 plaintiffs in Virginia and Tennessee objected because they say the NECP trustee didn't provide factual or legal explanations of why an insurance company could successfully deny coverage. Another group of 95 plaintiffs said they don't want insurance proceeds from policies covering some plaintiffs to be thrown into a pot for all plaintiffs, the report related. About New England Compounding Pharmacy New England Compounding Pharmacy Inc., filed a Chapter 11 petition (Bankr. D. Mass. Case No. 12-19882) in Boston on Dec. 21, 2012, after a meningitis outbreak linked to an injectable steroid, methylprednisolone acetate ("MPA"), manufactured by NECC, killed 39 people and sickened 656 in 19 states, though no illnesses have been reported in Massachusetts. The Debtor owns and operates the New England Compounding Center is located in Framingham, Mass. In October 2012, the company recalled all its products, not just those associated with the outbreak. Paul D. Moore, Esq., at Duane Morris LLP, in Boston, has been appointed as Chapter 11 Trustee of NECC. He is represented by: Jeffrey D. Sternklar, Esq. DUANE MORRIS LLP Suite 2400 100 High Street Boston, MA 02110-1724 Tel: 857-488-4216 Fax: 857-401-3034 An Official Committee of Unsecured Creditors appointed in the case has been represented by: BROWN RUDNICK LLP William R. Baldiga, Esq. Rebecca L. Fordon, Esq. Jessica L. Conte, Esq. One Financial Center Boston, MA 02111 Tel: (617) 856-8200 - and - David J. Molton, Esq. Seven Times Square New York, NY 10036 Tel: (212) 209-4800 NORTHERN BEEF: Can Hire Karl Wagner as Chief Financial Officer -------------------------------------------------------------- Northern Beef Packers Limited Partnership sought and obtained permission from the U.S. Bankruptcy Court to employ Karl Wagner as chief financial officer. No trustee or examiner has been appointed in this chapter 11 case. Northern Beef Packers has no remaining employees, and the Debtor said Mr. Wagner's continued retention is necessary while this case remains pending under chapter 11. In addition to preparing required reports, it is anticipated that Mr. Wagner will work with counsel for the Debtor and with the Creditors' Committee on these matters: a. Pending adversary proceedings regarding alleged violations of the WARN Act and the priority of the security interest of RockTenn CP, LLC; b. Claims administration; and c. Identifying potential preference and other avoidance actions. Under the proposed terms of retention, Mr. Wagner would be paid $75.00 per hour and would be reimbursed for all expenses incurred in connection with this case, including, but not limited to, expenses for postage and travel. The Committee has approved the proposed terms of Mr. Wagner's continued retention. Mr. Wagner has a pre-petition claim for unpaid wages in the amount of $6,041.89. Mr. Wagner has not shared or agreed to share any compensation paid to any party for services related to this case Mr. Wagner attested that he has no connections with the Debtor, creditors, any other party in interest, their respective attorneys and accountants, the United States trustee, or any person employed in the office of the United States trustee. About Northern Beef Packers Northern Beef Packers Limited Partnership, which operates a beef processing facility that opened in October 2012, filed for Chapter 11 relief (Bankr. D.S.D. Case No. 13-10118) on July 19, 2013. Karl Wagner signed the petition as chief financial officer. Judge Charles L. Nail, Jr., presides over the case. The Debtor estimated assets of at least $50 million and debts of at least $10 million. James M. Cremer, Esq., at Bantz, Gosch, & Cremer, L.L.C., serves at the Debtor's counsel. Steven H. Silton, Esq., at Cozen O'Connor serves as co-counsel. Lincoln Partners Advisors LLC serves as financial advisors. The U.S. Trustee has appointed five members to the Official Committee of Unsecured Creditors in the case. Robbins, Salomon & Patt, Ltd. serves as it lead counsel. Patrick T. Dougherty serves as its local counsel. OHCMC-OSWEGO LLC: Court Dismisses PNC Bank Suit ----------------------------------------------- PNC BANK, National Association, successor in interest by merger to National City Bank, successor in interest by merger to MidAmerica Bank, fsb, Plaintiff, v. OHCMC-Oswego, LLC, an Illinois limited liability company, and CAMILLE O. HOFFMANN, Defendants, CASE NO. 13-CV-07952 (N.D. Ill.), is a diversity foreclosure action brought by PNC Bank against an allegedly defaulting mortgagor, OHCMC- Oswego, LLC, and the guarantor of the mortgage, Camille O. Hoffmann. The action is stayed as to Oswego, which filed for Chapter 11 bankruptcy. The action remains live as to Hoffmann, however, and her motion to dismiss pursuant to Federal Rules of Civil Procedure 12(b)(3) and 12(b)(6) [15] is pending before the Court. In a July 17, 2014 Memorandum Opinion and Order availale at http://is.gd/UyKkwwfrom Leagle.com, District Judge Robert M. Dow, Jr., grants the Dismissal motion on Rule 12(b)(6) grounds. Judge Dow says the dismissal is without prejudice; PNC Bank is given 21 days to replead its allegations against Hoffmann if it believes that it can cure deficiencies identified in the Court's ruling consistent with its obligations under Federal Rule of Civil Procedure 11. The case remains stayed as to Oswego. PNC Bank, National Association, successor in interest by merger to National City Bank, successor in interest by merger to MidAmerica Bank, fsb, is represented by: James M. Crowley, Esq. James D. Major, Esq. Matthew L. Hendricksen, Esq. CROWLEY & LAMB, P.C. 221 N. LaSalle Street Chicago, IL 60601 Tel: 312-670-6900 Fax: 312-467-5926 E-mail: jcrowley@crowleylamb.com jmajor@crowleylamb.com mhendricksen@crowleylamb.com OHCMC-Oswego and Camille O. Hoffman are represented by: Richard Thomas Kienzler, Esq. FREEBORN & PETERS LLP 311 South Wacker Drive, Suite 3000 Chicago, IL 60606 Tel: (312) 360-6755 (direct) Fax: (312) 360-6520 E-mail: rkienzler@freeborn.com About OHCMC-Oswego OHCMC-Oswego, LLC, is an Illinois limited liability company that was formed on July 12, 2005 to, inter alia, acquire, develop and sell a series of real estate developments. It is wholly owned by Oliver-Hoffman Corporation. Its principal place of business is located at 3108 S. Rt. 59, Ste. 124-373, Naperville, Illinois. OHCMC-Oswego filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ill. Case No. 14-05349) in Chicago on Feb. 19, 2014, with plans to sell its assets. Camille O. Hoffmann signed the petition as president of managing and sole member. The Debtor disclosed $92,268 plus an unknown amount in assets and $56,782,127 in liabilities. The Hon. Carol A. Doyle presides over the case. The Debtor is represented by David C. Gustman,, Esq., at Freeborn & Peters LLP. No trustee, examiner or creditors' committee has been appointed in the case. * * * OHCMC-Oswego, LLC, filed a Modified Plan of Liquidation and Disclosure Statement on June 30, 2014. According to the latest plan documents, the Debtor's assets will be sold pursuant to the Court-approved sale procedures. The Debtor anticipates a sale process that will allow its real estate broker adequate time to market the properties to ensure the Debtor receives the highest and best offer for the properties. The proceeds of the sale of the properties will be used to satisfy the secured claims of BMO and PNC. The Debtor will distribute a set sum of money that is currently held in an escrow account with the Village of Oswego and totaling $29,408 to unsecured creditors in accordance with the Bankruptcy Code's priority scheme. The Debtor currently has an offer from L.B. Anderson Construction, Inc., the stalking horse bidder, to purchase the properties for $11,750,000, absent higher and better offers. The Debtor will solicit written bids from other potential bidders with all such bids to be received no later than 4:00 p.m. on Sept. 12, 2014. If the Debtor receives two or more qualified bids for the assets, the debtor will conduct an auction. the Debtor will determine the winning bid in its reasonable discretion. It will also select the back-up bid, to be utilized, in the event that the best bid is unable to timely close. The Bankruptcy Court has scheduled a joint hearing with respect to the sufficiency of the Disclosure Statement and confirmation of the Plan for Aug. 6, 2014. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/OHCMC-OSWEGO_80_dsmodifiedplan.pdf ORBITAL SCIENCES: S&P Retains 'BB+' CCR on CreditWatch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on Dulles, Va.-based Orbital Sciences Corp., including the 'BB+' corporate credit rating, remain on CreditWatch, where S&P placed them with negative implications on April 29, 2014. S&P's ratings on Alliant Techsystems Inc. (ATK), including the 'BB' corporate credit rating, also remain on CreditWatch, where S&P placed them with positive implications on April 29, 2014. The CreditWatch placements followed Orbital Sciences' announcement that it will merge with the aerospace and defense divisions of ATK, creating a new company known as Orbital ATK Inc. with revenue of about $4.5 billion. Before the merger, ATK will spin off its sporting division. S&P expects these transactions, which are subject to regulatory and shareholder approval, to close in late 2014. Orbital ATK will have about $1.7 billion of debt and $300 million of cash at closing, following the receipt of a $300 million to $350 million dividend from ATK's divested sporting division, which the company will used to pay down existing debt at ATK. The merger will result in some vertical integration and related cost savings, since Orbital Sciences currently purchases solid rocket engines from ATK. The combined entity will solely focus on aerospace and defense markets, which S&P sees as a modest negative to the business risk profile. S&P believes the commercial sporting equipment business provided significant diversification benefits to legacy ATK, having both better growth prospects and different demand drivers than the defense segments. S&P expects Orbital ATK to have pro forma debt to EBITDA of about 3x and funds from operations to debt of about 20%-25%. S&P plans to resolve the CreditWatch placements following discussions with management regarding the combined company's financial policy and strategic direction. "We believe the rating on the combined company could be either 'BB' or 'BB+', though there is a higher likelihood that the rating will be 'BB+', based on our preliminary analysis," said Standard & Poor's credit analyst Chris Mooney. "We will likely withdraw our rating on Orbital Sciences after the transaction closes, since it will not have any debt outstanding." ORMET CORP: Sale of Hannibal Smelter Okayed ------------------------------------------- Bankruptcy Judge Mary F. Walrath overruled the objection of the Steelworkers Pension Trust to the sale of Ormet Corporation's Hannibal Smelter and related assets to Niagara Worldwide LLC free and clear of any successor liability claim of the Trust. The Court allowed the sale to push through. The sale is supported by Ormet's lender Wayzata Investment Partners LLC, and the Official Unsecured Creditors' Committee. The Court also waived the requirement of Fed.R.Bankr.P. Rule 6004 and authorized Ormet and the buyer to close the sale immediately. Ormet and its affiliates were a major producer of aluminum in the United States and owned an alumina refinery in Burnside, Louisiana and an aluminum smelter in Hannibal, Ohio. As of the Petition Date, the Debtors employed over 1100 employees, the vast majority of which were represented by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers Union. Prior to the Petition Date, the Debtors had engaged an investment banker and conducted a full marketing process to sell all their assets as a going concern. Post-petition, the Debtors continued their sales effort, obtaining approval of bid procedures and a stalking horse bidder Smelter Acquisition, LLC. When no other bids were received, an Order was entered on June 10, 2013, approving the sale of substantially all the Debtors' assets to Smelter. There was a condition precedent to closing on the sale to Smelter, however: that the Debtors obtain relief from the Public Utilities Commission of Ohio modifying the terms of their contract for the purchase of electricity from Ohio Power Company and Columbus Southern Power Company. In a preliminary order entered on July 11, 2013, PUCO denied immediate emergency relief requested by the Debtors and scheduled further proceedings to consider the ultimate relief requested. As a result the Debtors began the initial process of reducing operations at their two plants. In its ultimate ruling on October 2, 2013, PUCO provided some relief to the Debtors but not all the relief required by the Smelter Asset Purchase Agreement. As a result of the PUCO rulings, the sale to Smelter did not close and the Lender declared the Debtors in default of the post- petition DIP financing. The Debtors ceased all production of aluminum in Hannibal on October 7, 2013, but kept the Burnside facility on "hot idle" status to permit it to be sold as a going concern. On October 16, 2013, the Debtors filed a Motion for approval of procedures for the wind down of the estates, which has been approved on an interim basis since then. As part of the wind down, the Debtors renewed their efforts to sell their assets. On October 26, 2013, the Debtors filed a motion to sell the Burnside refinery to Almatis, Inc. That sale was approved by Order dated November 12, 2013, and closed on December 12, 2013. The Debtors also sold their raw material inventory pursuant to the wind down procedures. Those sales permitted the repayment in full of the DIP loan. The efforts to sell the Hannibal facility took much longer, but by June 9, 2014, the Debtors had obtained a bid from CCP ORMT Acquisition, LLP at a cash price of $15,250,000. The Court approved bid procedures on June 19, 2013, and an auction was held on June 26, 2014, resulting in a final cash bid of $25,250,000 by the Buyer. The Stalking Horse was determined to be the back-up bidder at $25,000,000 (after consideration of its breakup fee). A hearing to consider approval of the sale of the Debtors' Hannibal facility and its related assets to the Buyer was held on June 30, 2014. The only objection remaining to that sale was one filed by the Trust, which is the holder of a claim estimated at $5 million for under-funding of the Debtors' pension plan. After considering the testimony and arguments of the parties, the Court granted the Trust's request to provide additional briefing on its argument that the Court should not approve the sale of the assets free of the Trust's potential successor liability claim against the Buyer. Cognizant of the Debtors' dwindling cash position and the July 29, 2014, deadline for closing the sale contained in the Asset Purchase Agreement with the Buyer, however, the Court directed briefs be filed by the Debtors and any parties in support of the sale by July 7 and by the Trust by July 11. The Debtors and the Lender timely filed their briefs in support. The Trust did not. Instead, the Trust filed a Motion seeking an extension until July 17, 2014, to file its brief. That Motion was opposed by the Debtors. Notwithstanding that request, the Trust filed its supplemental brief on July 14. Although it did not grant the extension request, the Court has considered the Trust's brief in making its ruling. The objection of the Trust raises two issues: can the sale to the Buyer under section 363(f)3 be free and clear of any successor liability claim that the Trust may have against it and should the Court deny the Debtors' request of a waiver of the fourteen-day waiting period under Rule 6004(h) and 6006(d) staying finality of any order approving the sale to permit the Trust to file an appeal and seek a further stay. A copy of Judge Walrath's July 17, 2014 Memorandum Opinion is available at http://is.gd/SVbfvjfrom Leagle.com. About Ormet Corp. Aluminum producer Ormet Corporation, along with affiliates, filed for Chapter 11 protection (Bankr. D. Del. Case No. 13-10334) on Feb. 25, 2013, with a deal to sell the business to a portfolio company owned by private investment funds managed by Wayzata Investment Partners LLC. Headquartered in Wheeling, West Virginia, Ormet -- http://www.ormet.com/-- is a fully integrated aluminum manufacturer, providing primary metal, extrusion and thixotropic billet, foil and flat rolled sheet and other products. Ormet disclosed assets of $406.8 million and liabilities totaling $416 million. Secured debt of about $180 million includes $139.5 million on a secured term loan and $39.3 million on a revolving credit. Affiliates that separately filed Chapter 11 petitions are Ormet Primary Aluminum Corporation; Ormet Aluminum Mill Products Corporation; Specialty Blanks Holding Corporation; and Ormet Railroad Corporation. Ormet emerged from a prior bankruptcy in April 2005. Lender Wayzata Investment Partners LLC is among existing owners. Others are UBS Willow Fund LLC and Fidelity Leverage Company Stock Fund. In the 2013 case, Ormet is represented in the case by Morris, Nichols, Arsht & Tunnell LLP's Erin R. Fay, Esq., Robert J. Dehney, Esq., Daniel B. Butz, Esq.; and Dinsmore & Shohl LLP's Kim Martin Lewis, Esq., Patrick D. Burns, Esq. Kurtzman Carson Consultants is the claims and notice agent. Evercore's Lloyd Sprung and Paul Billyard serve as investment bankers to the Debtor. An official committee of unsecured creditors was appointed in the case in March 2013. The Committee is represented by Rafael X. Zahralddin, Esq., Shelley A. Kinsella, Esq., and Jonathan M. Stemerman, Esq., at Elliott Greenleaf; and Sharon Levine, Esq., S. Jason Teele, Esq., and Cassandra M. Porter, Esq., at Lowenstein Sandler LLP. In October 2013, the U.S. Trustee filed papers saying the bankruptcy instead should be converted to a liquidation in Chapter 7. The U.S. Trustee said there is no budget and no financing for a wind-down in Chapter 11. In November 2013, the Bankruptcy Court approved on an interim basis Ormet's motion for (a) an interim plan to wind down the Debtors' businesses and protections for certain employees implementing the wind down, (b) authorizing the Debtors to modify employee benefit plans consistent with the wind down plan, and (c) authorizing the Debtors to take any and all actions necessary to implement the wind down plan. In December 2013, Ormet completed a previously approved sale of its alumina smelter in Burnside, Louisiana, to Almatis Inc. for $39.4 million. There was no auction. Completion of a court- approved sale of the business to lender and part owner Wayzata Investment Partners LLC became impossible when Ohio utility regulators refused in October to grant reductions in electricity prices. Wayzata would have acquired the business largely in exchange for debt. Ormet also has sold 32,000 metric tons of alumina for $8.4 million to Glencore AG, and its rights and interests in and to 17,086 MT baked carbon anodes, located at the Debtors' Hannibal, Ohio location, and its rights and interest in and to 34,755 MT baked carbon anodes, located in a storage in Baltimore, Maryland, to Alcoa Materials Management, Inc. In 2014, the Bankruptcy Court issued several interim orders related to the wind-down plan. Those orders authorize the Debtors to make payments through a certain date, as part of implementing the wind-down plan. OXFORD FINE: Case Summary & 6 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Oxford Fine Properties Inc. 9322 Third Avenue, Suite 502 Brooklyn, NY 11209 Case No.: 14-43665 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: July 18, 2014 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Hon. Carla E. Craig Debtor's Counsel: Kevin J Nash, Esq. GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP 1501 Broadway, 22nd Floor New York, NY 10036 Tel: (212) 301-6944 Fax: (212) 422-6836 Email: KNash@gwfglaw.com Total Assets: $3.37 million Total Liabilities: $5.71 million The petition was signed by Tim Ziss, president. A list of the Debtor's six largest unsecured creditors is available for free at http://bankrupt.com/misc/nyeb14-43665.pdf PSL-NORTH AMERICA: To Change Sale Plan Over Creditor Concerns ------------------------------------------------------------- Law360 reported that bankrupt pipe manufacturer PSL-North America LLC said in a court filing that it will alter both its $100 million stalking horse sale plan and its motion for final approval of debtor-in-possession financing to address concerns raised by one of its secured creditors. According to the report, in a reply motion before the Delaware bankruptcy court, PSL-NA, which provides pipe to the oil and gas industry, said it would change the bid procedures for the proposed sale of its assets to allow the debtor to consider alternative transaction structures from the one put forward by stalking horse bidder Jindal Tubular USA LLC and evaluate which offer would be the best if competing ones come in at auction. In an objection to the bid procedures, Standard Chartered Bank, Dubai International Financial Centre -- which is owed under a $30 million prepetition term loan facility and claims to be PSL-NA's senior creditor -- argued that the transaction structure proposed in Jindal Tubular's stalking horse bid would not pass muster as a Section 363 sale, the report related. About PSL-North America Founded in 2006, PSL-North America LLC is a manufacturer and coater of large diameter steel pipes. The company has a state-of- the-art facility located in Bay St. Louis, Mississippi, with the land leased for 99 years. The company is an American-based partially owned subsidiary of India's largest producer and manufacturer of steel piping, PSL Limited. On June 16, 2014, PSL-North America LLC and PSL USA Inc., filed voluntary petitions in Delaware (Lead Case No. 14-11477) seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Judge Peter J. Walsh. The Debtors seek to have their cases jointly administered for procedural purposes. PSL-North America estimated $50 million to $100 million in assets and $100 million to $500 million in debt in the bankruptcy petition. As of the Petition Date, the company had total outstanding debt obligations of $130 million, according to a court filing. Proposed counsel for the Debtor are John H. Knight, Esq., Paul N. Heath, Esq., Tyler D. Semmelman, Esq., Amanda R. Steele, Esq. and William A. Romanowicz, Esq. at Richards, Layton & Finger, P.A. of Wilmington, Delaware. Epiq Bankruptcy Solutions serves as claims agent. PUERTO RICO: Ex-Boxing Champ Sues to Recover Losses from Bonds -------------------------------------------------------------- Aaron Kuriloff and Mike Cherney, writing for The Wall Street Journal, reported that Felix Trinidad, a Hall of Fame boxer, has filed a complaint seeking to recover losses he says exceed $63 million from investing in Puerto Rican municipal-bond funds. According to the Journal, in an April complaint filed with Wall Street's self-regulator, the Financial Industry Regulatory Authority, Mr. Trinidad accuses his former close friend and ex- financial adviser, Jose "Pepe" Ramos, as well as investment firms that employed him -- including units of UBS AG, Wells Fargo & Co. and Popular Inc. -- of squandering much of Mr. Trinidad's $86 million in career winnings betting on Puerto Rico closed-end municipal-bond funds without warning of the risks. QIMONDA AG: Ch. 15 Courts Not Bound By Foreign IP Law ----------------------------------------------------- Law360 reported that U.S. patent licensees of bankrupt German semiconductor manufacturer Qimonda AG have urged the U.S. Supreme Court to reject its Chapter 15 representative's attempt at compelling U.S. bankruptcy courts to follow foreign insolvency laws when evaluating intellectual property contracts. According to the report, the respondents said that the Fourth Circuit properly upheld a bankruptcy court ruling applying a provision of Chapter 15 that lets licensees of a bankrupt entity keep their existing contracts. About Qimonda AG Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- was a global memory supplier with a diversified DRAM product portfolio. The Company generated net sales of EUR1.79 billion in financial year 2008 and had -- prior to its announcement of a repositioning of its business -- roughly 12,200 employees worldwide, of which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond, Va. Qimonda AG commenced insolvency proceedings in a local court in Munich, Germany, on Jan. 23, 2009. On June 15, 2009, QAG filed a petition (Bankr. E.D. Va. Case No. 09-14766) for relief under Chapter 15 of the U.S. Bankruptcy Code. Qimonda North America Corp., an indirect and wholly owned subsidiary of QAG, is the North American sales and marketing subsidiary of QAG. QNA is also the parent company of Qimonda Richmond LLC. QNA and QR sought Chapter 11 protection (Bankr. D. Del. Case No. 09-10589) on Feb. 20, 2009. Mark D. Collins, Esq., Michael J. Merchant, Esq., and Lee E. Kaufman, Esq., at Richards Layton & Finger PA, in Wilmington Delaware; and Mark Thompson, Esq., Morris J. Massel, Esq., and Terry Sanders, Esq., at Simpson Thacher & Bartlett LLP, in New York City, represented the Debtors as counsel. Roberta A. DeAngelis, the United States Trustee for Region 3, appointed seven creditors to serve on an official committee of unsecured creditors. Jones Day and Ashby & Geddes represented the Committee. In its bankruptcy petition, Qimonda Richmond, LLC, estimated more than US$1 billion in assets and debts. The information, the Chapter 11 Debtors said, was based on QR's financial records which are maintained on a consolidated basis with QNA. In September 2011, the Chapter 11 Debtors won confirmation of their Chapter 11 liquidation plan which projects that unsecured creditors with claims between US$33 million and US$35 million would have a recovery between 6.1% and 11.1%. No secured claims of significance remained. QUIZNOS: Ex-Brass Want to Be Protected From Lawsuits ---------------------------------------------------- Law360 reported that a group of former Quiznos brass who say they could be targets of litigation stemming from the sandwich shop's bankruptcy lodged a lawsuit in Delaware Chancery Court seeking to have the court enforce prior agreements claimed to indemnify them from legal action. According to the report, the former Quiznos leaders who lodged the suit include ex-CEO Greg MacDonald, ex- Chief Financial Officer Dennis Smythe and seven individuals who served on the company's board of managers for various years through 2012, all of whom claim they were provided releases and indemnity through a series of agreements including one born out of the sandwich chain's 2012 out-of-court restructuring. The case is Meyers et al v. Quiz-Dia LLC et al, case number 9878, in the Delaware Court of Chancery. 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. The lead debtor, QCE Finance LLC, scheduled $736,858 in total assets plus "undetermined amounts". It scheduled $618,437,362 plus "undetermined amounts" as liabilities. The U.S. Trustee has appointed a seven-member official committee of unsecured creditors. The Committee has tapped Cousins Chipman & Brown LLP's Scott D. Cousins, Esq., and Ann Kashishian, Esq.; and Otterbourg P.C.'s Scott L. Hazan, Esq., Jenette A. Barrow- Bosshart, Esq., and David M. Posner, Esq., as counsel. Avenue Capital Management II, L.P. and its affiliates are represented by John J. Rapisardi, Esq., and Joseph Zujkowski, Esq., at O'Melveny & Myers LLP in New York. Fortress Investment Group and its affiliates are represented by Skadden Arps Slate Meagher & Flom's Van C. Durrer, Esq. Co-counsel to the Consenting First Lien Lenders are Milbank Tweed Hadley & McCloy's Thomas R. Kreller, Esq., and David B. Zolkin, Esq., and Morris Nichols Arsht & Tunnell's Robert J. Dehney. Counsel to the First Lien Agent is Ropes & Gray's Mark R. Somerstein. Counsel to the Second Lien Agent is Pillsbury Winthrop's Bart Pisella, Esq., and Timothy P. Kober, Esq. Counsel to Vectra Bank Colorado, National Association, is Kasowitz Benson's Adam L. Shiff, Esq. Quiznos' Plan of Reorganization was confirmed by the U.S. Bankruptcy Court in Wilmington, Delaware on May 12, 2014. The company on July 1, 2014, disclosed that it has successfully completed its financial restructuring and emerged from Chapter 11. REVEL AC: Can Proceed with Aug. 7 Auction ----------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Revel AC Inc. got formal authorization from the U.S. Bankruptcy Court in Camden, New Jersey, to sell its Atlantic City casino business at auction on Aug. 7. According to the report, a hearing for approval of the sale is set for Aug. 8 unless the buyer decides to acquire the casino-hotel as part of emergence from Chapter 11 under a reorganization plan. Sale procedures allow the official creditors' committee to confer with Revel in deciding whether a prospective bidder is qualified to participate in the auction, and consult with Revel in deciding whether a secured lender should be permitted to bid using debt rather than cash, the Bloomberg report related. Prior to the hearing, the Committee objected to the proposed bid procedures, saying the bankruptcy is being used "to cleanse title of estate assets for the sole and exclusive benefit of pre-petition lenders," Mr. Rochelle further related. Tenants who provide dining, nightlife, spa and retail amenities to Revel also objected to bid procedures, saying they're partners with the casino, "for better or worse," and should be involved in the process by which their new partner is selected, Mr. Rochelle said. About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases are assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13- 16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. ROGERS LEE BROWN: Southern Bank's Suit Dismissed ------------------------------------------------ Chief Bankruptcy Judge Stephen C. St. John granted the request of Clara P. Swanson, Chapter 7 Trustee for Darvin Alexander and Bonita Renee Alexander, to dismiss the complaint filed by Southern Bank and Trust, James M. Pickrell, Jr., Trustee on the Deed of Trust, and Janice P. Anderson, Trustee on the Deed of Trust, against defendants Darvin Alexander and Bonita Renee Alexander; Leontine Brown and Rogers Lee Brown; the Internal Revenue Service; and Clara P. Swanson, Chapter 7 Trustee for Darvin and Bonita. In its complaint, the Bank seeks an order (a) declaring Rogers and Leontine to be the owners of real property located at 700 Pleasant Ridge Court, Chesapeake, Virginia, 23320; (b) declaring that Darvin and Bonita do not have any interest in the Property; and (c) reforming the 2006 Deed and any other necessary documents to reflect the intention of Rogers and Leontine that the Bank would have a lien on the Property securing the repayment of a 2006 loan for $475,000 loan with the Bank of the Commonwealth, predecessor of the Bank, and the Line of Credit. Rogers and Leontine filed a Chapter 11 petition (Case No. 12-70536-SCS) on February 9, 2012. The Brown Bankruptcy Case was converted to a Chapter 7 case on January 10, 2013. Darvin and Bonita filed a Chapter 13 bankruptcy petition (case number 11-74515-SCS) on October 10, 2011. The Debtors converted their Bankruptcy Case to one under Chapter 7 on November 6, 2013, and Clara P. Swanson was appointed as the Chapter 7 trustee. The case is, SOUTHERN BANK AND TRUST COMPANY, JAMES M. PICKRELL, JR., TRUSTEE ON THE DEED OF TRUST, JANICE P. ANDERSON, TRUSTEE ON THE DEED OF TRUST, Plaintiffs, v. DARVIN ALEXANDER, BONITA RENEE ALEXANDER, LEONTINE BROWN, ROGERS LEE BROWN, INTERNAL REVENUE SERVICE, CLARA P. SWANSON, CHAPTER 7 TRUSTEE, Defendants, APN NO. 13-07146-SCS (Bankr. E.D. Va.). A copy of the Court's July 16, 2014 Memorandum Opinion is available at http://is.gd/6YuxlDfrom Leagle.com. RUE21 INC: Bank Debt Trades at 13.4% Off ---------------------------------------- Participations in a syndicated loan under which Rue21 Inc. is a borrower traded in the secondary market at 86.60 cents-on-the- dollar during the week ended Friday, July 11, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 0.10 percentage points from the previous week, The Journal relates. Rue21 Inc. pays 475 basis points above LIBOR to borrow under the facility. The bank loan matures on Sept. 30, 2020 and carries Moody's B3 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 205 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. SEARS METHODIST: HUD Tries To Block Cash Use for Ch. 11 ------------------------------------------------------- Law360 reported that the U.S. Department of Housing and Urban Development on Thursday urged a Texas bankruptcy court to reject Sears Methodist Retirement System Inc.'s attempt to use cash collateral to pay the costs of its Chapter 11 proceedings, saying such expenditures could jeopardize the safety of senior housing community tenants. According to the report, in an objection to housing community operators' request for the use of cash collateral, HUD argued that project funds going toward paying expenses that don't benefit the communities would be contrary to regulatory agreements. HUD -- which filed the objection through the U.S. attorney for the Northern District of Texas, a Sears Methodist creditor -- warned against expenditures that may include attorneys' fees, trustee's fees and other professional fees and expenses associated with this bankruptcy. About Sears Methodist As a leading Texas senior living icon established on Christian principles, Sears Methodist Retirement System Inc. provides secure, rewarding, and luxurious residency to seniors. The system includes: (i) eight senior living communities located in Abilene, Amarillo, Lubbock, Odessa and Tyler, Texas; (ii) three veterans homes located in El Paso, McAllen and Big Spring, Texas, managed by Senior Dimensions, Inc., pursuant to contracts between SDI and the Veterans Land Board of Texas; and (iii) Texas Senior Management, Inc. ("TSM"), Senior Living Assurance, Inc. ("SLA") and Southwest Assurance Company, Ltd. ("SWAC"), which provide, as applicable, management and insurance services to the System. Sears Methodist Senior Housing, LLC, is the general partner of, and controls .01% of the interests in, Canyons Senior Living, L.P. ("CSL"). Sears Methodist and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 14- 32821) on June 10, 2014. The cases are assigned to Judge Stacey G. Jernigan. The Debtors' counsel is Vincent P. Slusher, Esq., and Andrew Zollinger, Esq., at DLA Piper LLP (US), in Dallas, Texas; and Thomas R. Califano, Esq., Gabriella L. Zborovsky, Esq., and Jacob S. Frumkin, Esq., at DLA Piper LLP (US), in New York. The Debtors' financial advisor is Alvarez & Marsal Healthcare Industry Group, LLC, while the Debtors' investment banker is Cain Brothers & Company, LLC. The Debtors' notice, claims and solicitation agent is GCG Inc. The Debtors have sought and obtained an order authorizing joint administration of their Chapter 11 cases. The U.S. Trustee has appointed five members to the Official Committee of Unsecured Creditors. S.B. RESTAURANT: To Have Aug. 4 Auction --------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Elephant Bar, a chain of 29 restaurants in seven states, will auction its business on Aug. 4 if there's a bid to top the offer from secured lender Cerberus Business Finance LLC. According to the report, under procedures approved on July 8 by the U.S. Bankruptcy Court in Santa Ana, California, competing bids are due July 31, and a hearing to approve the sale will take place on Aug. 8. Cerberus will pay for the business with $12 million in pre-bankruptcy first-lien debt, assume specified liabilities and pay to wind down the Chapter 11 effort, the report related. S.B. Restaurant Co. dba Elephant Bar Global Grill/Wok Kitchen, now a chain of 29 restaurants in seven states, filed a petition for Chapter 11 protection (Bankr. C.D. Cal. Case No. 14-13778) on June 17, 2014, in Santa Ana, California. The case is assigned to Judge Erithe A. Smith. The Debtors' counsel is Jeffrey N Pomerantz, Esq., and John W. Lucas, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, California. The Debtors' chief restructuring officers are from Deloitte Transactions & Business Analytics LLP, while their investment banker is Mastodon Ventures, Inc. The Debtors' noticing claims and balloting agent is Rust Consulting Omni Bankruptcy. SCYTHES INC: Files for Bankruptcy in Toronto -------------------------------------------- Scythes Inc., o/a Flying Colours International, commenced bankruptcy proceedings in Toronto, Ontario, on July 1, 2014. Scythes is headquartered at 128 Sterling Road, in Toronto. A first meeting of its creditors was held July 17 at the office of the Trustee at 300-111 Richmond St. W. in Toronto. The Trustee in Bankruptcy may be reached at: MNP Ltd. 300-111 Richmond St. W. Toronto, ON M5H 2G4 Tel: 416-596-1711 STANDARD PACIFIC: Moody's Raises Corporate Family Rating to B1 -------------------------------------------------------------- Moody's Investors Service upgraded the Corporate Family Rating of Standard Pacific Corp. to B1 from B2 and the Probability of Default Rating to B1-PD from B2-PD. Concurrently, Moody's upgraded all of its existing senior unsecured notes to B1 from B2. The Speculative-Grade Liquidity ("SGL") assessment was affirmed at SGL-2. The rating outlook is stable. The upgrade of the Corporate Family Rating to B1 reflects Moody's expectation that Standard Pacific will continue to show improvement in credit and operating metrics over the next 18 months. Standard Pacific's niche market position with an attractive product portfolio and buyer profile contributes to the higher demand for its homes. This translates into enhanced credit metrics. Moody's currently projects for 2015 homebuilding debt/homebuilding book capitalization to be below 50% and Homebuilding EBIT/ (Interest Expense + Capitalized Interest) to be above 4x. Both of the metrics are strong for the rating category. The following rating actions were taken: Corporate Family Rating, upgraded to B1 from B2; Probability of Default Rating, upgraded to B1-PD from B2-PD; Senior unsecured notes, upgraded to B1 (LGD4) from B2 (LGD4); Senior unsecured and subordinated shelf ratings, upgraded to (P)B1/(P)B3 from (P)B2/(P)Caa1 Speculative-Grade Liquidity Rating, affirmed at SGL-2. All of Standard Pacific's debt is guaranteed by its principal operating subsidiaries. Ratings Rationale The B1 Corporate Family Rating reflects a continued improvement in Standard Pacific's credit metrics. Moody's projects that by the end of 2015 homebuilding debt/homebuilding book capitalization will be below 50% and Homebuilding EBIT/ (Interest Expense + Capitalized Interest) will be above 4x. Both of the metrics are strong for the rating category. Standard Pacific's niche market position, as exemplified with its attractive product portfolio and buyer profile (move-up/luxury), contributes to the higher demand for its homes. Partly because of its niche market position, Standard Pacific's returns are driven more by home price appreciation than on volume increase. The company's average sales price is well over $400,000 whereas the average for all the rated builders is below $390,000. In particular, in California, where the company derives a significant amount of its earnings, ASP is slightly above $600 million but home prices can reach over $1.4 million. In addition, The rating takes into account Standard Pacific's gross margins, which are among the best in the industry, and the company's good liquidity profile. At the same time, the rating is constrained by the expectation of negative cash flow from operations, as Standard Pacific continues to invest in land. The rating is also constrained by the company's limited geographic diversification as California and Florida make up a large majority of the company's sales. However, the percentage of total revenues and deliveries from these two states have decreased on a year over year basis as of March 31, 2014, showing that Standard Pacific is starting to become more geographically diversified. The stable ratings outlook considers the expected improvement in Standard Pacific's credit metrics as the recovery in the homebuilding industry continues to take place. The ratings could improve if the company were to maintain its profitability and solid liquidity, grow its tangible equity base, and reduce and maintain debt leverage below 50%. The ratings could be downgraded if adjusted homebuilding debt-to- capitalization increases and is projected to be maintained above 55%. Deterioration in liquidity including a significant decline in its cash reserves caused by operating losses or sizeable investment could also pressure the ratings. Additionally, debt financed dividend payments could lead to a ratings downgrade. Headquartered in Irvine, California and begun in 1965, Standard Pacific Corp. constructs and sells single-family attached and detached homes focusing on the move-up market. The company has homebuilding operations in California, Texas, Arizona, Colorado, Florida, North Carolina, and South Carolina. Revenues and net income before declaration of preferred dividends for the LTM period ending March 31, 2014 were approximately $2 billion and $205 million, respectively. The principal methodology used in this rating was the Global Homebuilding Industry published in March 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. SURGERY CENTER: S&P Assigns 'B' CCR Over Symbion Deal ----------------------------------------------------- Standard & Poor's Ratings Services withdrew its rating on SP Holdco I Inc. and assigned a 'B' corporate credit rating to Surgery Center Holdings Inc. The outlook is stable. The issue-level and recovery ratings on Surgery Center Holdings' first- and second-lien debt are unaffected by the $50 million increase to each of these loans. These revisions reflect the revisions to the company's pending financing that eliminates debt at the holding company level. The corporate credit rating will fall under Surgery Center Holdings Inc., which is also the issuer of the company's proposed debt. "We expect the company will continue to generate moderate discretionary cash flow, despite high leverage," said Standard & Poor's credit analyst Tulip Lim. "We expect leverage will remain high at 8x by the end of 2015 and remain over 6x for the next few years, supporting our financial risk score of 'highly leveraged'." The rating also reflects the company's narrow operating focus in a fragmented and competitive market. Additionally, it reflects some integration risk related to adding an acquisition of this size. These reasons are principally why Standard & Poor's deems the company's business risk profile to be "weak." SURGERY CENTER: Moody's Affirms 'B3' CFR Over Symbion Deal ---------------------------------------------------------- Moody's Investors Service affirmed the B3 Corporate Family Rating and B3-PD Probability of Default Rating of Surgery Center Holdings, Inc. ("Surgery Partners"). At the same time, Moody's affirmed the B1 rating on Surgery Partners' proposed $950 million senior secured first lien credit facilities, consisting of an $80 million revolving credit facility expiring in 2019 and an $870 million first lien term loan due 2020. Concurrently, Moody's affirmed the Caa2 rating on Surgery Partners' proposed $490 million second lien term loan due 2021. Moody's will withdraw at close the B3 Corporate Family Rating and B3-PD Probability of Default Rating at SP HoldCo I, Inc. and the previously assigned Caa2 rating on the company's $100 million PIK term loan. The rating outlook is negative. On June 13, 2014, Surgery Partners announced the acquisition of Symbion, Inc. ("Symbion") for a total purchase price of $792 million. Proceeds from the proposed financing will be used to fund the acquisition, refinance existing debt and fund a series of planned future acquisitions. Symbion is an owner and operator of short-stay surgical facilities providing, non-emergency surgical procedures, including orthopedics, pain management and gastroenterology. The ratings at SP HoldCo I, Inc. are being withdrawn following Surgery Partners decision to increase the first and second lien term loans by $50 million each, instead of issuing the $100 million PIK term loans at SP Holdco I, Inc. The following is a summary of Moody's ratings actions and revised LGD estimates: Surgery Center Holdings, Inc.: Ratings affirmed: Corporate Family Rating at B3 Probability of Default Rating at B3-PD $80 million senior secured revolver expiring 2019 at B1 (LGD 3) from B1 (LGD 2) $870 million senior secured first lien term loan due 2020 at B1 (LGD 3) from B1 (LGD 2) $490 million senior secured second lien term loan due 2021 at Caa2 (LGD 5) Ratings to be withdrawn at close: Surgery Center Holdings, Inc.: $30 million senior secured revolving credit facility expiring 2018 at B1 (LGD 3) $315 million senior secured first lien term loan due 2019 at B1 (LGD 3) $210 million senior secured second lien term loan due 2020 at Caa2 (LGD 5) SP HoldCo I, Inc.: Corporate Family Rating at B3 Probability of Default Rating at B3-PD $100 million PIK term loan due 2021 at Caa2 (LGD 6) Ratings Rationale The B3 Corporate Family Rating reflects Surgery Partners' very high leverage, which will increase following the acquisition of Symbion, and the company's aggressive acquisition and shareholder friendly financial policy. Moody's estimates that the pro forma debt to EBITDA for the LTM period ending March 31, 2014, would have been approximately 8.4 times. Furthermore, the ratings are constrained by a sluggish economic environment and the high underemployment rate and increasing healthcare expense burden on patients that will result in sluggish procedure volumes in the year ahead. In addition, the potential for rate compression from government sponsored programs (mostly Medicare) and commercial payors over the longer-term is a concern. The rating benefits from the industry's long-term growth prospects for the sector, as many patients and payors prefer the outpatient environment (primarily due to lower cost and better outcomes) for certain specialty procedures. The negative outlook reflects Moody's concern with Surgery Partners' heightened financial leverage resulting from its aggressive financial policy and the challenges it will face integrating Symbion. The rating could be downgraded if the company is unable to improve its financial performance, or if it stumbles in its integration of Symbion. Additionally, the company has no capacity at its current rating level for additional financial leverage. Ratings could also be downgraded if liquidity deteriorates or free cash flow turns negative. Although an upgrade is unlikely in the near-term, if the company is able to integrate Symbion without financial or operational disruption, while maintaining good liquidity, the rating could be upgraded. More specifically, for a rating upgrade to occur given the company's size and debt leverage, debt to EBITDA would have to be sustained around 6 times. The principal methodology used in this rating was the Global Healthcare Service Providers 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. Surgery Partners is an operator of outpatient surgery hospitals that provide a diversified core of surgical procedures in pain management, orthopedics, gastrointestinal, ophthalmology, ear, nose and throat, general surgery and urology. SYNERGY LOGISTICS: Case Summary & Largest Unsecured Creditor ------------------------------------------------------------ Debtor: Synergy Logistics, LLC 689 Mariaville Rd. Schenectady, NY 12306 Case No.: 14-11598 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: July 19, 2014 Court: United States Bankruptcy Court Northern District of New York (Albany) Debtor's Counsel: Richard Croak, Esq. RICHARD CROAK 314 Great Oaks Blvd Albany, NY 12203 Tel: (518) 690-4410 Fax: 518-690-4435 Email: rcroak@richardcroak.com Total Assets: $1.86 million Total Liabilities: $1.85 million The petition was signed by Richard Lucia, president. The Debtor listed US Small Business Administration, at 409 3rd St, SW Washington DC, as its largest unsecured creditor holding a claim of $658,000. A copy of the petition is available for free at: http://bankrupt.com/misc/nynb14-11598.pdf TQ WELLNESS: Case Summary & 8 Largest Unsecured Creditors --------------------------------------------------------- Debtor: TQ Wellness Holdings, Inc. dba Energy Sports and Fitness 3362 Acworth Summit Blvd. NW Acworth, GA 30101 Case No.: 14-31245 Chapter 11 Petition Date: July 18, 2014 Court: United States Bankruptcy Court Western District of North Carolina (Charlotte) Judge: Hon. Craig Whitley Debtor's Counsel: Bryan W. Stone, Esq. ARNOLD & SMITH, PLLC 200 N. McDowell St. Charlotte, NC 28204 Tel: (704) 370-2828 Fax: (704) 370-2022 Email: bryan.stone@arnoldsmithlaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Mark Montgomery, president. A list of the Debtor's eight largest unsecured creditors is available for free at http://bankrupt.com/misc/ncwb14-31245.pdf UNITED CUSTOM FABRICATING: UC Fab of Fla. Dragged in Union Suit --------------------------------------------------------------- District Judge Roy B. Dalton, Jr., in Orlando, Florida, last week overturned Magistrate Judge Karla R. Spaulding's Order Denying Plaintiffs' Amended Motion for Proceedings Supplementary to Implead UC Fab of Florida, LLC, filed April 14, 2014, and impleaded UC Fab in the ERISA action, IRONWORKERS LOCAL UNION NO. 808; IRONWORKERS LOCAL UNION 808 PENSION FUND; IRONWORKERS LOCAL UNION NO. 808 ANNUITY FUND; IRONWORKERS LOCAL UNION NO. 808 APPRENTICESHIP FUND; WADE A. IVEY; GREGORY HOLMES; BEN SCHMITT; WES KENDRICK; STANLEY DVORAK, JR.; and SOUTHEASTERN IRON WORKERS WELFARE FUND, Plaintiffs, v. UNITED CUSTOM FABRICATING, INC., Defendant, CASE NO. 6:09-CV-552-ORL-37KRS (M.D. Fla.). The ERISA action was initiated on March 26, 2009, against United States Custom Fabricating to recover unpaid employee benefit contributions and related dues and assessments. The parties settled their dispute. The Court then closed this case after entering judgment against United and in favor of Plaintiffs for $128,940.25, with interest accruing from April 19, 2010, "at the legal rate as provided by law." Approximately two months after the Court closed this action, United filed a Suggestion of Bankruptcy. In re United Custom Fabricating, Inc., No. 6:10-bk- 10390-ABB (M.D. Fla.). Plaintiffs filed a proof of claim in the Chapter 7 bankruptcy proceeding for the amount of the judgment in this case, and the Bankruptcy Trustee issued Plaintiffs a payment of $2,027.00 in December 2011. Thereafter, United was liquidated in the bankruptcy proceeding. On October 2, 2012, Plaintiffs filed a motion in the action for proceedings supplementary to implead UC Fab of Florida, LLC "as successor of United" pursuant to Federal Rule of Civil Procedure 69 and Sec. 56.29, Florida Statutes. Plaintiffs contend that UC Fab was formed on February 18, 2009 -- approximately one month before Plaintiffs initiated this action against United and more than a year before United filed for bankruptcy. Plaintiffs further contend that UC Fab was initially established on the same premises as United and that it hired some of the same personnel and officers. UC Fab opposed Plaintiffs' motion on the grounds that: (1) Plaintiffs "failed to comply with the requirements" of Sec. 56.29, Florida Statutes, by filing an affidavit "identifying the unsatisfied amount of the judgment, and stat[ing] that an execution is valid and outstanding;" and (2) Plaintiffs claim is barred due to Plaintiffs' failure to "cause the Trustee to pursue this claim in the bankruptcy for the benefit of all creditors." Both motions were referred to U.S. Magistrate Judge Karla R. Spaulding who denied Plaintiffs' motion due to their failure to comply with the affidavit requirements of section 56.29(1). On September 6, 2013, Plaintiffs filed an amended motion for proceedings supplementary to implead UC Fab as the successor of United. The amended motion was referred to Magistrate Judge Spaulding who noted that Plaintiffs still had not submitted an affidavit in conformance with the requirements of Sec. 56.29(1). In an Order dated November 6, 2013, the Magistrate Judge granted Plaintiffs leave to file the required affidavit on or before November 15, 2013. Plaintiffs were further directed to "address whether the judgment is still valid, or has been discharged, in light of the payment on the judgment" in the bankruptcy proceeding. Plaintiffs filed a response to the Magistrate Judge's Order and the declaration of Scott Ernsberger. On April 14, 2014, Magistrate Judge Spaulding entered an Order denying Plaintiffs' amended motion for two reasons: (1) Plaintiffs failed to address the "impact" of United's "bankruptcy proceeding on the continued viability of the judgment"; and (2) Plaintiffs did not address "whether the United States Supreme Court or the United States Court of Appeals for the Eleventh Circuit recognize successor liability for unpaid contributions under ERISA when the ERISA employer files a Chapter 7 bankruptcy petition and is subsequently liquidated." Plaintiffs filed objections to the Order on April 28, 2014. Specifically, Plaintiffs argue that Chicago Truck Drivers v. Tasemkin, Inc., 59 F.3d 48 (7th Cir. 1995) and Anderson v. J.A. Interior Applications, Inc., 1998 U.S. Dist. LEXIS 15971 (N.D. Ill. 1998) adequately support their successor liability claim against UC Fab in the absence of "[E]leventh [C]ircuit authority on the precise issue of whether a trust fund may proceed against a successor where the predecessor has been liquidated through bankruptcy." Plaintiffs further argue that the "factual context" of Tasemkin and Anderson "is sufficiently analogous to this case to make these cases persuasive authority." In his July 16 Order available at http://is.gd/Sgm1Agfrom Leagle.com, Judge Dalton ruled that: 1. Plaintiffs' Objections to Magistrate Judge's Order of April 14, 2014 Denying Motion for Proceedings Supplementary to Implead UC Fab of Florida, LLC and Incorporated Memorandum of Law are sustained. 2. Magistrate Judge Karla R. Spaulding's Order Denying Plaintiffs' Amended Motion for Proceedings Supplementary to Implead UC Fab of Florida, LLC is rejected. 3. Plaintiffs' Amended Motion for Proceedings Supplementary to Implead UC Fab of Florida, LLC is granted. 4. Proceedings supplementary are commenced in this action pursuant to Federal Rule of Civil Procedure 69 and Sec. 56.29, Florida Statutes. 5. UC Fab of Florida, LLC is impleaded in this action. 6. Plaintiffs are directed to serve UC Fab of Florida, LLC with copies of the Court's Order and the Amended Motion in accordance with the procedures for service of an initial complaint and summons under Federal Rule of Civil Procedure 4(h). The Plaintiffs, led by Ironworkers Local Union No. 808, are represented by: Tobe Lev, Esq. EGAN, LEV & SIWICA, PA 231 E Colonial Dr Orlando, FL 32801 Tel: (407) 422-1400 United Custom Fabricating, Inc., is represented by: Agustin R. Benitez, Esq. BENITEZ LAW GROUP, PL 1223 E Concord St Orlando, FL 32803 Tel: 407-894-5000 - and - Kevin E. Mangum, Esq. MATEER & HARBERT, PA P.O. Box 2854 Orlando, FL 32802-2854 Tel: (407) 425-9044 Fax: (407) 423-2016 E-mail: kmangum@mateerharbert.com WALTER ENERGY: Bank Debt Trades at 4.05% Off -------------------------------------------- Participations in a syndicated loan under which Walter Energy Inc is a borrower traded in the secondary market at 95.95 cents-on- the-dollar during the week ended Friday, July 11, 2013 according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.46 percentage points from the previous week, The Journal relates. Walter Energy Inc pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on March 14, 2018. The bank debt carries Moody's B2 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 249 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. WHITING PETROLEUM: S&P Retains 'BB+' CCR & Positive Outlook ----------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'BBB' issue-level rating (two notches higher than the corporate credit rating) to Denver, Colo.-based Whiting Petroleum Corp.'s proposed amended $4.5 billion secured credit facility (held at subsidiary Whiting Oil & Gas Corp), which includes a $1 billion delayed draw term loan. The facility, which is being amended in conjunction with Whiting's pending acquisition of Kodiak Oil & Gas Corp., will have an initial committed amount of $3.5 billion. The recovery rating on this debt is '1', indicating S&P's expectation of very high (90% to 100%) recovery in the event of a payment default. The credit facility is guaranteed by the company's material subsidiaries and secured by substantially all of the assets of the borrower and guarantors. The credit agreement allows for collateral suspension under certain conditions. S&P would reassess the issue level rating on the credit facility if the collateral suspension were to come into effect. The 'BB+' corporate credit rating and positive outlook on Whiting Petroleum remain unchanged. The ratings on Whiting Petroleum reflect S&P's assessment of the company's "satisfactory" business risk and "significant" financial risk profiles. The positive outlook reflects S&P's expectation that Whiting Petroleum will continue to expand its reserves and production while working to bring capital spending more in line with cash flows. Ratings List Whiting Petroleum Corp. Corporate credit rating BB+/Positive/-- New Rating Whiting Petroleum Corp. Senior Secured $4.5 bil. credit facility due 2019 BBB Recovery rating 1 WINDSOR PETROLEUM: Has Interim Authority to Use Cash Collateral --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware gave Windsor Petroleum Transport Corporation, et al., interim authority to use cash collateral securing their prepetition indebtedness. Windsor Petroleum is the issuer of $239,100,000 in the aggregate principal amount of secured notes under an indenture with the Bank of New York Mellon, as successor indenture trustee to The Chase Manhattan Bank, for the benefit of secured Noteholders. The Secured Notes are secured by substantially all assets of Windsor Petroleum and the shipping companies. As of the Petition Date, the Note Obligor Debtors were liable to the Secured Noteholders in the aggregate amount of not less than $196,000,000. The Debtors stated in court papers that they have an immediate need to use the cash collateral to, among other things, preserve and maintain the going concern value of the Debtors. A hearing to consider final approval of the request is scheduled for Aug. 12, 2014, at 1:30 p.m. (prevailing Eastern time). Objections must be submitted on or before Aug. 5, and served on: * counsel to the Debtors: Pauline K. Morgan, Esq. Sean T. Greecher, Esq. YOUNG CONAWAY STARGATT & TAYLOR LLP 1000 North King Street Wilmington, DE 19801 Fax: (302) 576-6497 * U.S. Trustee, represented by: Benjamin A. Hackman, Esq. 844 King Street, Suite 2207 Wilmington, DE 19801 Fax: (302) 573-6497 Email: Benjamin.a.hackman@usdoj.gov * counsel for the Supporting Noteholders: Andrew N. Rosenberg, Esq. Elizabeth R. McColm, Esq. Oksana Lashko, Esq. PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP 1285 Avenue of the Americas New York, NY 10019 Fax: (212) 492-0244 Email: arosenberg@paulweiss.com emccolm@paulweiss.com olashko@paulweiss.com -- and -- Richard S. Cobb LANDIS RATH & COBB LLP 919 Market Street, Suite 1800 P.O. Box 2087 Wilmington, DE 19899 Fax: (302) 467-4450 Email: cobb@lrclaw.com * counsel for the Indenture Trustee: Edward P. Zujkowski, Esq. Thomas A. Pitta, Esq. EMMET, MARVIN & MARTIN LLP 120 Broadway, 32 Floor New York, NY 10271 Email: ezukjowski@emmetmarvin.com tpitta@emmetmarvin.com Windsor Petroleum Transport Corporation and several of its subsidiaries and related entities on July 14, 2014, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in Wilmington, Delaware (Lead Case No. 14-11708). The Debtors' counsel is Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The Debtors' crisis managers come from AMA Capital, while their chief restructuring officer is Paul J. Leand, Jr. WINDSOR PETROLEUM: Has Interim OK to Pay Managers & Vendors Claims ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware gave Windsor Petroleum Transport Corporation, et al., interim authority to pay $1,705,000 to satisfy prepetition claims filed by managers and critical vendors. The Debtors are authorized to pay manager claims up to an aggregate amount of $1,675,000, outstanding taxes fees up to an aggregate amount of $10,000, and vendor claims up to an aggregate amount of $20,000. A final hearing on the motion will be conducted on Aug. 12, 2014, at 1:30 p.m. (ET). At the final hearing, the Debtors will seek authority to pay a total of $2,875,000 to satisfy managers claims. Objections are due Aug. 5. The Debtors said in court papers that without paying the managers and vendors' claims they would refuse, or would be unable to, provide necessary goods and services to the Debtors on a postpetition basis. The Debtors add that any interruption or shutdown of their operations would greatly diminish estate value and frustrate their Chapter 11 efforts. Windsor Petroleum Transport Corporation and several of its subsidiaries and related entities on July 14, 2014, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in Wilmington, Delaware (Lead Case No. 14-11708). The Debtors' counsel is Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The Debtors' crisis managers come from AMA Capital, while their chief restructuring officer is Paul J. Leand, Jr. * Ninth Circuit Allows Extraterritorial Reach of U.S. Law --------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the San Francisco-based U.S. Court of Appeals for the Ninth Circuit on July 3 allowed a fraudulent transfer of a home in Mexico to be set aside under federal bankruptcy law. U.S. Circuit Judge Jerome Farris, in an opinion for the three-judge appeals panel, said the judge-made local-action doctrine didn't apply in the case, which involves a couple in California who transferred the home they owned in Mexico to a corporation before filing for bankruptcy, because there's an applicable statute. Judge Farris also said fraudulent-transfer law can be applied extraterritorially, the report related. The case is Kismet Acquisition LLC v. Icenhower (In re Icenhower), 10-55933, U.S. Court of Appeals for the Ninth Circuit (San Francisco). * Despite Exposure of Madoff Fraud, New Ponzi Schemes Emerge ------------------------------------------------------------ Elizabeth Olson, writing for The New York Times' DealBook, reported that despite efforts by the authorities, particularly after the unmasking of Bernard L. Madoff in 2008 in the largest Ponzi scheme in history, these frauds still surface distressingly often around the country. According to the report, state and federal financial regulators say a new Ponzi scheme operator is found nearly every week, and legal actions are brought against about 100 such questionable investment operations every year. Over the last five years, Jordan D. Maglich, a Tampa, Fla., lawyer who follows Ponzi schemes, said, he has followed about 500 Ponzi schemes on his site, which includes links to legal documents, including those filed by the Securities and Exchange Commission, which posts some of them on its website; the Commodity Futures Trading Commission; and state financial authorities, the report said. * Interventions Still Varies Following Bankruptcies, Fitch Says --------------------------------------------------------------- A year after Detroit filed bankruptcy, state frameworks still vary greatly on when, how, and why to intervene to prevent or relieve instances of local fiscal distress, according to a new Fitch Ratings report. 'Michigan, like other states with a statutory approach to intervention in situations of local fiscal stress, has seen mixed results,' said Stephen Friday, Associate Director. 'On the positive side, Michigan's emergency management law prevented a number of notable defaults, among them the city of Pontiac. But the case of Detroit was unique given the magnitude of the challenges faced. 'Detroit's default and subsequent bankruptcy filing demonstrate that state intervention mechanisms do not necessarily preclude credit deterioration or bondholder default.' Fitch's new report comments on recent and notable cases of fiscal distress as well as state interventions that fall into the following five categories: -- Some states, such as Alabama, take a hands-off approach and do not have intervention programs or practices; -- Other states, including California and Nevada, have formal programs or processes that have limited powers; -- Although both New York and Connecticut lack formal fiscal distress prevention programs for locals, historic ad hoc responses to cases of local stress have been strong; -- Rhode Island, New Jersey, Michigan, and Pennsylvania have responded to local fiscal crises with highly organized and structured programs; and -- Some states, such as North Carolina, have instituted strong, preemptive programs effective at identifying and preventing local fiscal distress. * Ace Cash Express to Pay $10MM over Debt-Collection Practices -------------------------------------------------------------- Danielle Douglas, writing for The Washington Post, reported that Ace Cash Express, one of the U.S.'s largest payday lenders, inked a $10 million settlement with the Consumer Financial Protection Bureau. According to the report, Irving, Tex.-based company agreed to the deal but denies wrongdoing. The report said Ace must pay $5 million to refund delinquent customers who were subject to illegal collection practices from March 7, 2011 to Sept. 12, 2012. Ace must also pay a $5 million civil penalty and ?- end its abusive tactics, the Post added, citing the order. * Fischer Says Financial Stability Panel Needs More Power --------------------------------------------------------- Jeff Kearns, writing for Bloomberg News, reported that Federal Reserve Vice Chairman Stanley Fischer said a council of financial regulators established by the Dodd-Frank Act may need more authority to help guard against threats to the banking system. According to the report, Fischer said in his first speech since joining the central bank that members of a committee of key regulators, including the Fed and the Treasury Department, would benefit from having financial stability added to their mandates. * Regulators Ready Money-Fund Rules ----------------------------------- Andrew Ackerman, writing for The Wall Street Journal, reported that U.S. regulators are poised to complete long-awaited rules intended to prevent a repeat of the investor stampede out of money-market mutual funds that threatened to freeze corporate lending during the 2008 financial crisis. According to the report, the Securities and Exchange Commission is expected to vote on a plan that would require certain money funds catering to large, institutional investors to abandon their fixed $1 share price and float in value like other mutual funds, these people said. The plan also would allow money funds to temporarily block investors from withdrawing their money in times of stress, or require a fee to redeem shares, the report said. * Small Second-Quarter Rise in Number of Low-Rated Junk Companies ----------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the ranks of companies with the weakest credit ratings grew in the second quarter, the third consecutive quarterly increase. According to the Bloomberg report, citing Moody's Investors Service, there are 166 companies with credit ratings of B3 or lower with a negative outlook, compared with 159 in the prior quarter. The number is far short of the 290 companies with the lowest ratings when Moody's started keeping records in early 2009, the report said. * Mike Wyse Joins Donlin, Recano & Company as Executive Director ---------------------------------------------------------------- Donlin, Recano & Company, Inc., an affiliate of American Stock Transfer & Trust Company, LLC (AST), on July 17 disclosed that Mike Wyse has joined the firm as Executive Director. Mr. Wyse will be based in Donlin Recano's headquarters in New York and will oversee new business development initiatives for the company. "I am honored to be part of such an esteemed team of professionals," noted Mr. Wyse. "I look forward to playing a major role in the continued growth of this dynamic brand known for its commitment to quality and superior client experience." With nearly 15 years of business experience specializing in turnarounds and restructurings, Mr. Wyse has vast knowledge in all facets of the bankruptcy, business analytics and valuation processes across various industries. Prior to assuming his role with Donlin Recano, Mr. Wyse worked at Zolfo Cooper and most recently at Great American Group where he developed comprehensive solutions to support clients with complex situations. He has represented numerous clients throughout the years and assisted in some of the most successful bankruptcy cases. Mr. Wyse is a Certified Insolvency & Restructuring Advisor and a member of the Association of Insolvency and Restructuring Advisors, the Turnaround Management Association, American Bankruptcy Institute, Association for Corporate Growth and the New York Institute of Credit. "It is with great pleasure that I welcome Mike to our team," commented Alexander Leventhal, CEO of Donlin Recano. "He shares our core values and is an ideal fit as we continue to grow our business." About Donlin, Recano & Company, Inc. Founded in 1989, Donlin, Recano & Company is a bankruptcy administration company that has served over 200 national clients across a broad range of industries and business sectors. Working with counsel, turnaround advisors and the affected company, Donlin Recano helps organize and guide Chapter 11 clients through required bankruptcy tasks, including provision of creditor notification, website-accessible information, formation of professional call centers, management of claims, balloting, distribution and other administrative services. About AST AST and its affiliates in the Link Group network are providers of registry services and technology to financial market participants around the globe. AST and its affiliate, CST Trust Company (CST), form the North American division of the Link Group. Together AST and CST provide comprehensive stock transfer and employee plan services to more than 8,000 public issues and over 5.5 million shareholders. The division serves clients located throughout North America and in over 22 foreign countries, ranging in size from initial public offerings to Fortune 100 companies. * Large Companies With Insolvent Balance Sheet ---------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT CN 118.9 (8.4) 1.0 ABSOLUTE SOFTWRE OU1 GR 118.9 (8.4) 1.0 ABSOLUTE SOFTWRE ALSWF US 118.9 (8.4) 1.0 ACHAOGEN INC AKAO US 13.8 (0.0) 2.1 ACTINIUM PHARMAC ATNM US 6.6 (13.5) (13.5) ADVANCED EMISSIO ADES US 106.4 (46.1) (15.3) ADVANCED EMISSIO OXQ1 GR 106.4 (46.1) (15.3) ADVENT SOFTWARE AXQ GR 452.2 (91.1) (90.7) ADVENT SOFTWARE ADVS US 452.2 (91.1) (90.7) AEMETIS INC AMTX US 99.4 (4.2) (14.6) AEMETIS INC DW51 GR 99.4 (4.2) (14.6) AEROHIVE NETWORK 2NW GR 69.1 (5.2) 26.7 AEROHIVE NETWORK HIVE US 69.1 (5.2) 26.7 AIR CANADA-CL A ADH TH 9,964.0 (1,947.0) (185.0) AIR CANADA-CL A ADH GR 9,964.0 (1,947.0) (185.0) AIR CANADA-CL A AC/A CN 9,964.0 (1,947.0) (185.0) AIR CANADA-CL A AIDIF US 9,964.0 (1,947.0) (185.0) AIR CANADA-CL B AIDEF US 9,964.0 (1,947.0) (185.0) AIR CANADA-CL B AC/B CN 9,964.0 (1,947.0) (185.0) ALDER BIOPHARMAC ALDR US 16.6 (37.2) (8.4) ALDER BIOPHARMAC 3A9 GR 16.6 (37.2) (8.4) ALDER BIOPHARMAC ALDR1EUR EU 16.6 (37.2) (8.4) ALLIANCE HEALTHC AIQ US 465.3 (136.6) 59.5 AMC NETWORKS-A AMCX US 3,484.7 (478.3) 642.3 AMC NETWORKS-A 9AC GR 3,484.7 (478.3) 642.3 AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2) AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0 AMYRIS INC AMRS US 236.8 (112.5) 33.5 ANGIE'S LIST INC ANGI US 124.3 (20.3) (30.0) ANGIE'S LIST INC 8AL TH 124.3 (20.3) (30.0) ANGIE'S LIST INC 8AL GR 124.3 (20.3) (30.0) ARRAY BIOPHARMA AR2 TH 135.2 (23.3) 72.2 ARRAY BIOPHARMA ARRY US 135.2 (23.3) 72.2 ASPEN AEROGELS I AP1 GR 88.2 (80.7) (5.2) ASPEN AEROGELS I ASPN US 88.2 (80.7) (5.2) AUTOZONE INC AZO US 7,371.8 (1,808.2) (1,016.1) AUTOZONE INC AZ5 TH 7,371.8 (1,808.2) (1,016.1) AUTOZONE INC AZ5 GR 7,371.8 (1,808.2) (1,016.1) AXIM INTERNATION AXIM US 0.1 (0.1) (0.1) BERRY PLASTICS G BERY US 5,367.0 (135.0) 684.0 BERRY PLASTICS G BP0 GR 5,367.0 (135.0) 684.0 BIOCRYST PHARM BO1 TH 43.4 (5.7) 22.0 BIOCRYST PHARM BO1 GR 43.4 (5.7) 22.0 BIOCRYST PHARM BCRX US 43.4 (5.7) 22.0 BRP INC/CA-SUB V BRPIF US 2,019.7 (17.0) 172.7 BRP INC/CA-SUB V DOO CN 2,019.7 (17.0) 172.7 BRP INC/CA-SUB V B15A GR 2,019.7 (17.0) 172.7 BURLINGTON STORE BUI GR 2,547.8 (136.3) 124.8 BURLINGTON STORE BURL US 2,547.8 (136.3) 124.8 CABLEVISION SY-A CVY GR 6,542.9 (5,210.9) 281.8 CABLEVISION SY-A CVC US 6,542.9 (5,210.9) 281.8 CABLEVISION-W/I CVC-W US 6,542.9 (5,210.9) 281.8 CABLEVISION-W/I 8441293Q US 6,542.9 (5,210.9) 281.8 CAESARS ENTERTAI C08 GR 24,376.7 (2,276.8) 566.0 CAESARS ENTERTAI CZR US 24,376.7 (2,276.8) 566.0 CALLIDUS CAPITAL 28K GR 444.5 (4.3) - CALLIDUS CAPITAL CBL CN 444.5 (4.3) - CANNABIS CAPITAL CBCA US 0.0 (0.0) (0.0) CANNAVEST CORP CANV US 10.7 (0.2) (1.3) CANNAVEST CORP 0VE GR 10.7 (0.2) (1.3) CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CASELLA WASTE CWST US 649.9 (8.5) (18.9) CC MEDIA-A CCMO US 14,597.1 (9,128.0) 643.8 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CENVEO INC CVO US 1,206.8 (511.7) 145.0 CHOICE HOTELS CZH GR 554.9 (454.6) 109.5 CHOICE HOTELS CHH US 554.9 (454.6) 109.5 CIENA CORP CIE1 GR 1,795.5 (80.8) 641.3 CIENA CORP CIE1 TH 1,795.5 (80.8) 641.3 CIENA CORP CIEN TE 1,795.5 (80.8) 641.3 CIENA CORP CIEN US 1,795.5 (80.8) 641.3 CINCINNATI BELL CBB US 2,101.5 (670.7) 7.7 CYNK TECHNOLOGY CYNK US - (0.0) (0.0) DELEK LOGISTICS DKL US 301.3 (4.1) 14.8 DELEK LOGISTICS D6L GR 301.3 (4.1) 14.8 DEX MEDIA INC 9DX GR 2,275.0 (782.0) 162.0 DEX MEDIA INC DXM US 2,275.0 (782.0) 162.0 DIRECTV DIG1 GR 22,520.0 (6,512.0) (929.0) DIRECTV DTV US 22,520.0 (6,512.0) (929.0) DIRECTV DTV CI 22,520.0 (6,512.0) (929.0) DOMINO'S PIZZA EZV GR 524.3 (1,269.0) 113.5 DOMINO'S PIZZA EZV TH 524.3 (1,269.0) 113.5 DOMINO'S PIZZA DPZ US 524.3 (1,269.0) 113.5 DUN & BRADSTREET DNB US 1,807.2 (1,061.9) (85.5) DUN & BRADSTREET DB5 GR 1,807.2 (1,061.9) (85.5) EDGEN GROUP INC EDG US 883.8 (0.8) 409.2 ELEVEN BIOTHERAP EBIO US 5.1 (6.1) (2.9) EMPIRE RESORTS I LHC1 GR 38.7 (14.0) (14.6) EMPIRE RESORTS I NYNY US 38.7 (14.0) (14.6) EMPIRE STATE -ES ESBA US 1,122.2 (31.6) (925.9) EMPIRE STATE-S60 OGCP US 1,122.2 (31.6) (925.9) FAIRPOINT COMMUN FONN GR 1,546.4 (338.8) 25.3 FAIRPOINT COMMUN FRP US 1,546.4 (338.8) 25.3 FERRELLGAS-LP FGP US 1,589.9 (88.9) 89.0 FERRELLGAS-LP FEG GR 1,589.9 (88.9) 89.0 FIVE9 INC 1F9 GR 69.2 (9.0) (1.9) FIVE9 INC FIVN US 69.2 (9.0) (1.9) FREESCALE SEMICO 1FS GR 3,100.0 (3,851.0) 1,244.0 FREESCALE SEMICO 1FS TH 3,100.0 (3,851.0) 1,244.0 FREESCALE SEMICO FSL US 3,100.0 (3,851.0) 1,244.0 GAMING AND LEISU 2GL GR 2,561.9 (68.0) (44.7) GAMING AND LEISU GLPI US 2,561.9 (68.0) (44.7) GENCORP INC GCY TH 1,675.6 (49.0) 86.7 GENCORP INC GY US 1,675.6 (49.0) 86.7 GENCORP INC GCY GR 1,675.6 (49.0) 86.7 GENTIVA HEALTH GTIV US 1,234.9 (297.6) 99.2 GENTIVA HEALTH GHT GR 1,234.9 (297.6) 99.2 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GLOBALSTAR INC GSAT US 1,350.0 (74.3) (97.3) GLORI ENERGY INC GLRI US 0.1 (0.0) - GOLD RESERVE INC GDRZF US 21.5 (5.6) 1.2 GOLD RESERVE INC GRZ CN 21.5 (5.6) 1.2 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 GTT COMMUNICATIO GTT US 168.5 (0.1) (25.3) HCA HOLDINGS INC HCA US 29,809.0 (6,467.0) 2,986.0 HCA HOLDINGS INC 2BH TH 29,809.0 (6,467.0) 2,986.0 HCA HOLDINGS INC 2BH GR 29,809.0 (6,467.0) 2,986.0 HD SUPPLY HOLDIN 5HD GR 6,552.0 (750.0) 1,446.0 HD SUPPLY HOLDIN HDS US 6,552.0 (750.0) 1,446.0 HORIZON PHARMA I HZNP US 299.1 (229.2) 93.2 HORIZON PHARMA I HPM TH 299.1 (229.2) 93.2 HORIZON PHARMA I HPM GR 299.1 (229.2) 93.2 HOVNANIAN ENT-A HO3 GR 1,838.8 (462.5) 1,122.1 HOVNANIAN ENT-A HOV US 1,838.8 (462.5) 1,122.1 HOVNANIAN ENT-B HOVVB US 1,838.8 (462.5) 1,122.1 HOVNANIAN-A-WI HOV-W US 1,838.8 (462.5) 1,122.1 HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8) HUGHES TELEMATIC HUTC US 110.2 (101.6) (113.8) IMPRIVATA INC IMPR US 35.6 (4.3) (10.8) IMPRIVATA INC I62 GR 35.6 (4.3) (10.8) INCYTE CORP INCY US 666.8 (162.4) 474.2 INCYTE CORP ICY TH 666.8 (162.4) 474.2 INCYTE CORP ICY GR 666.8 (162.4) 474.2 INFOR US INC LWSN US 6,515.2 (555.7) (303.6) INTERCEPT PHARMA I4P GR 141.9 (153.7) (148.2) INTERCEPT PHARMA I4P TH 141.9 (153.7) (148.2) INTERCEPT PHARMA ICPT US 141.9 (153.7) (148.2) IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU 1JE GR 1,642.6 (117.4) 221.0 JUST ENERGY GROU JE CN 1,642.6 (117.4) 221.0 JUST ENERGY GROU JE US 1,642.6 (117.4) 221.0 KINAXIS INC KXS CN 44.6 (70.4) (6.4) L BRANDS INC LB US 6,663.0 (609.0) 1,070.0 L BRANDS INC LTD TH 6,663.0 (609.0) 1,070.0 L BRANDS INC LTD GR 6,663.0 (609.0) 1,070.0 LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9 LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9 LEE ENTERPRISES LEE US 797.3 (155.6) 0.8 LEE ENTERPRISES LE7 GR 797.3 (155.6) 0.8 LORILLARD INC LLV TH 3,912.0 (2,161.0) 897.0 LORILLARD INC LLV GR 3,912.0 (2,161.0) 897.0 LORILLARD INC LO US 3,912.0 (2,161.0) 897.0 LUMENPULSE INC 0L6 GR 29.4 (38.4) 3.5 LUMENPULSE INC LMP CN 29.4 (38.4) 3.5 LUMENPULSE INC LMPLF US 29.4 (38.4) 3.5 MARRIOTT INTL-A MAR US 6,665.0 (1,625.0) (1,031.0) MARRIOTT INTL-A MAQ GR 6,665.0 (1,625.0) (1,031.0) MARRIOTT INTL-A MAQ TH 6,665.0 (1,625.0) (1,031.0) MDC PARTNERS-A MDCA US 1,570.3 (94.1) (218.7) MDC PARTNERS-A MD7A GR 1,570.3 (94.1) (218.7) MDC PARTNERS-A MDZ/A CN 1,570.3 (94.1) (218.7) MERITOR INC MTOR US 2,531.0 (782.0) 298.0 MERITOR INC AID1 GR 2,531.0 (782.0) 298.0 MERRIMACK PHARMA MACK US 165.0 (65.8) 81.9 MERRIMACK PHARMA MP6 GR 165.0 (65.8) 81.9 MICHAELS COS INC MIM GR 1,716.0 (2,734.0) 493.0 MICHAELS COS INC MIK US 1,716.0 (2,734.0) 493.0 MONEYGRAM INTERN MGI US 4,761.4 (39.5) 115.9 MORGANS HOTEL GR M1U GR 695.2 (202.0) 129.7 MORGANS HOTEL GR MHGC US 695.2 (202.0) 129.7 MOXIAN CHINA INC MOXC US 0.0 (0.0) (0.0) MPG OFFICE TRUST MPG US 1,280.0 (437.3) - NATIONAL CINEMED NCMI US 998.4 (179.2) 99.9 NATIONAL CINEMED XWM GR 998.4 (179.2) 99.9 NAVISTAR INTL IHR TH 7,727.0 (4,072.0) 1,070.0 NAVISTAR INTL IHR GR 7,727.0 (4,072.0) 1,070.0 NAVISTAR INTL NAV US 7,727.0 (4,072.0) 1,070.0 NEKTAR THERAPEUT ITH GR 487.0 (9.8) 225.5 NEKTAR THERAPEUT NKTR US 487.0 (9.8) 225.5 NEW ENG RLTY-LP NEN US 180.1 (23.2) - NEXSTAR BROADC-A NXST US 1,148.8 (8.4) 134.7 NEXSTAR BROADC-A NXZ GR 1,148.8 (8.4) 134.7 NII HOLDING INC NIHD* MM 8,189.7 (8.8) 1,078.9 NORTHWEST BIO NBYA GR 12.5 (31.1) (31.2) NORTHWEST BIO NWBO US 12.5 (31.1) (31.2) NYMOX PHARMACEUT NYMX US 0.9 (6.3) (3.8) OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0) OPOWER INC 38O GR 63.1 (6.3) (11.9) OPOWER INC OPWR US 63.1 (6.3) (11.9) OPOWER INC 38O TH 63.1 (6.3) (11.9) PALM INC PALM US 1,007.2 (6.2) 141.7 PHIBRO ANIMAL HE PAHC LN 473.3 (78.7) 177.3 PHIBRO ANIMAL HE PAO GR 473.3 (78.7) 177.3 PHIBRO ANIMAL HE PAO EU 473.3 (78.7) 177.3 PHIBRO ANIMAL-A PB8 GR 473.3 (78.7) 177.3 PHIBRO ANIMAL-A PAHC US 473.3 (78.7) 177.3 PHILIP MORRIS IN PMI SW 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM1CHF EU 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN 4I1 GR 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM1EUR EU 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM US 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN 4I1 TH 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM FP 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM1 TE 36,325.0 (7,847.0) 1,130.0 PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLY GEM HOLDINGS PG6 GR 1,033.7 (107.2) 199.4 PLY GEM HOLDINGS PGEM US 1,033.7 (107.2) 199.4 PROTALEX INC PRTX US 2.8 (7.0) 2.3 PROTECTION ONE PONE US 562.9 (61.8) (7.6) QUALITY DISTRIBU QLTY US 443.2 (51.2) 106.0 QUALITY DISTRIBU QDZ GR 443.2 (51.2) 106.0 QUINTILES TRANSN QTS GR 3,061.9 (559.5) 571.3 QUINTILES TRANSN Q US 3,061.9 (559.5) 571.3 RADIUS HEALTH IN RDUS US 12.8 (24.5) (22.7) RADIUS HEALTH IN 1R8 GR 12.8 (24.5) (22.7) RADNET INC PQI GR 737.2 (9.3) 61.4 RADNET INC RDNT US 737.2 (9.3) 61.4 REGAL ENTERTAI-A RGC US 2,787.3 (751.2) 142.6 REGAL ENTERTAI-A RETA GR 2,787.3 (751.2) 142.6 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTPATH INC PRM US 208.0 (91.7) 3.6 RETROPHIN INC 17R GR 94.0 (35.4) (107.0) RETROPHIN INC RTRX US 94.0 (35.4) (107.0) REVLON INC-A RVL1 GR 2,105.1 (589.0) 248.9 REVLON INC-A REV US 2,105.1 (589.0) 248.9 RITE AID CORP RTA GR 6,946.5 (2,046.4) 1,643.0 RITE AID CORP RTA TH 6,946.5 (2,046.4) 1,643.0 RITE AID CORP RAD US 6,946.5 (2,046.4) 1,643.0 ROCKWELL MEDICAL RMTI US 26.8 (3.5) 8.2 ROCKWELL MEDICAL RWM GR 26.8 (3.5) 8.2 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 SABRE CORP SABR US 4,750.4 (312.9) (279.6) SABRE CORP 19S GR 4,750.4 (312.9) (279.6) SABRE CORP 19S TH 4,750.4 (312.9) (279.6) SALLY BEAUTY HOL S7V GR 2,106.0 (268.8) 715.8 SALLY BEAUTY HOL SBH US 2,106.0 (268.8) 715.8 SEQUENOM INC SQNM US 122.9 (58.6) 40.8 SERVICEMASTER GL SVW GR 5,197.0 (369.0) 240.0 SERVICEMASTER GL SERV US 5,197.0 (369.0) 240.0 SILVER SPRING NE SSNI US 524.4 (97.1) 97.5 SILVER SPRING NE 9SI GR 524.4 (97.1) 97.5 SILVER SPRING NE 9SI TH 524.4 (97.1) 97.5 SPORTSMAN'S WARE 06S GR 272.7 (52.1) 75.1 SPORTSMAN'S WARE SPWH US 272.7 (52.1) 75.1 SUNEDISON INC SUNE* MM 7,166.1 (236.5) 250.8 SUNEDISON INC WFR TH 7,166.1 (236.5) 250.8 SUNEDISON INC WFR GR 7,166.1 (236.5) 250.8 SUNEDISON INC SUNE US 7,166.1 (236.5) 250.8 SUNGAME CORP SGMZ US 2.2 (3.6) (3.9) SUPERVALU INC SJ1 GR 4,374.0 (738.0) 52.0 SUPERVALU INC SVU US 4,374.0 (738.0) 52.0 SUPERVALU INC SJ1 TH 4,374.0 (738.0) 52.0 SUPERVALU INC SVU* MM 4,374.0 (738.0) 52.0 THRESHOLD PHARMA THLD US 94.7 (29.0) 50.3 TOWN SPORTS INTE CLUB US 410.6 (50.2) 26.1 TRANSDIGM GROUP T7D GR 6,399.3 (125.6) 975.5 TRANSDIGM GROUP TDG US 6,399.3 (125.6) 975.5 TRINET GROUP INC TNET US 1,340.4 (46.1) 93.8 TRINET GROUP INC TNETEUR EU 1,340.4 (46.1) 93.8 TRINET GROUP INC TN3 GR 1,340.4 (46.1) 93.8 TRUPANION INC TRUP US 49.0 (5.5) 7.2 ULTRA PETROLEUM UPL US 2,881.8 (227.7) (374.8) ULTRA PETROLEUM UPM GR 2,881.8 (227.7) (374.8) UNISYS CORP UISEUR EU 2,399.2 (659.6) 421.4 UNISYS CORP USY1 TH 2,399.2 (659.6) 421.4 UNISYS CORP UIS1 SW 2,399.2 (659.6) 421.4 UNISYS CORP USY1 GR 2,399.2 (659.6) 421.4 UNISYS CORP UIS US 2,399.2 (659.6) 421.4 UNISYS CORP UISCHF EU 2,399.2 (659.6) 421.4 VANGUARD MINING VNMC US 1.4 (1.5) (0.2) VARONIS SYSTEMS VS2 GR 33.7 (1.5) 1.8 VARONIS SYSTEMS VRNS US 33.7 (1.5) 1.8 VECTOR GROUP LTD VGR US 1,459.2 (12.6) 422.5 VECTOR GROUP LTD VGR GR 1,459.2 (12.6) 422.5 VENOCO INC VQ US 738.2 (130.8) (13.4) VERISIGN INC VRS TH 2,609.3 (457.6) (253.6) VERISIGN INC VRS GR 2,609.3 (457.6) (253.6) VERISIGN INC VRSN US 2,609.3 (457.6) (253.6) VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WW6 TH 1,483.1 (1,452.8) (31.0) WEIGHT WATCHERS WW6 GR 1,483.1 (1,452.8) (31.0) WEIGHT WATCHERS WTW US 1,483.1 (1,452.8) (31.0) WEST CORP WSTC US 3,544.1 (709.4) 405.3 WEST CORP WT2 GR 3,544.1 (709.4) 405.3 WESTMORELAND COA WLB US 1,407.1 (206.2) (30.5) WESTMORELAND COA WME GR 1,407.1 (206.2) (30.5) XERIUM TECHNOLOG TXRN GR 631.1 (11.8) 104.4 XERIUM TECHNOLOG XRM US 631.1 (11.8) 104.4 YRC WORLDWIDE IN YRCW US 2,215.1 (363.1) 193.6 YRC WORLDWIDE IN YEL1 TH 2,215.1 (363.1) 193.6 YRC WORLDWIDE IN YEL1 GR 2,215.1 (363.1) 193.6 ********* 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 ***