/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/140728.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, July 28, 2014, Vol. 18, No. 208 Headlines 1494-1496 CIA: Case Summary & 2 Unsecured Creditors ADELPHIA COMMUNICATIONS: ART Seeks to Extend Term to 2016 ADVANCED MICRO DEVICES: Incurs $36-Mil. Net Loss in 2nd Quarter ALION SCIENCE: Amends Comprehensive Refinancing Agreement ALPHA NATURAL: Bank Debt Trades at 4% Off AMERICAN AIRLINES: Reports $864MM Net Profit in 2nd Quarter AMERICAN AIRLINES: Capital Deployment Plan No Impact on B1 CFR AMERICAN APPAREL: Committee Adopts 2014 Severance Plan ASPECT SOFTWARE: Moody's Affirms B3 CFR & Changes Outlook to Neg. ASPEN GROUP: Chairman Extends Due Dates of Outstanding Notes ATLANTIC CITY, NJ: Moody's Cuts General Obligation Rating to Ba1 AXION INTERNATIONAL: Amends Tender Offer Statement with SEC B/E AEROSPACE: EMTEQ/Fisher Deals No Impact on Moody's Ba1 CFR BANK OF THE CAROLINAS: Completes $45.8 Million Private Placement BANK OF THE CAROLINAS: EJF Capital Reports 9.8% Equity Stake BANK OF THE CAROLINAS: Ithan Creek Reports 9.6% Equity Stake BANK OF THE CAROLINAS: BSOF Master Holds 6.5% Equity Stake BERNARD L. MADOFF: Trustee Spars With ERISA Investors Over Claims BON-TON STORES: Amends Employment Agreement with CEO BON-TON STORES: Gabelli Funds Holds 8.4% Equity Stake BUILDERS FIRSTSOURCE: Reports $10.6 Million Net Income in Q2 CAPSUGEL S.A.: Moody's Affirms 'B2' Corporate Family Rating CARDTRONICS INC: Moody's Keeps B2 CFR Over Welch ATM Acquisition CASH STORE: Applies for Administration in the United Kingdom CUBIC ENERGY: Hires BDO USA as New Accountants CENTAUR ACQUISITION: Moody's Hikes Corporate Family Rating to B2 CENTRAL CENTER: Case Summary & 3 Unsecured Creditors CLEAR CHANNEL: Incurs $187 Million Net Loss in Second Quarter CLEARWATER PAPER: Moody's Rates New $300MM Unsecured Notes 'Ba2' CYCLONE POWER: Inks Separation Agreement with Unit DETROIT, MI: Judge Trims Disputes for August Bankruptcy Trial DETROIT, MI: Institute of Arts Secures $26.8MM for Bargain DOMINIC A. GORNIAK: FirstMerit Bank Has Green Light to Foreclose DUTCH GOLD: Inks License Agreement with Abba Medix EASTSIDE COMMERCIAL: Community & Southern Assumes All Deposits ELBIT IMAGING: Closes Settlement Agreement with Bank of Leumi ENERGY FUTURE: Wants Plan Filing Date Extended Until 2015 ENERGY FUTURE: To Pursue Alternatives; Cancels Plan Support Deal ENERGY FUTURE: Separate 401(k) Plan for Oncor Workers Approved ENERGY FUTURE: Indenture Trustee Wants EFC Creditors' Committee ESSAR STEEL: Donlin Recano to Provide Noticing & Website Services FIRST DATA: Inks Repricing Amendment to 2007 Credit Agreement FLORIDA GAMING: Liquidation Plan Confirmed by Judge FOOT LOCKER: Moody's Raises Corporate Family Rating to Ba1 GETTY IMAGES: Bank Debt Trades at 4% Off GLACIAL ENERGY: Bankruptcy Stays "Motylinski" Lawsuit GLOBAL GEOPHYSICAL: Autoseis Inc. Has Until Sept. 24 to File Plan GLOBAL GEOPHYSICAL: May Obtain Up to $5MM in Performance Bonds GLOBAL GEOPHYSICAL: Hilco Industrial Approved as Sales Agent GLOBAL GEOPHYSICAL: UHY LLP Approved as Independent Auditor GREEN EARTH: Paul Andrecola Reports 39% Equity Stake GREEN MOUNTAIN: Case Summary & 20 Largest Unsecured Creditors GREENCHOICE BANK: FDIC Is Receiver; Providence Assumes Deposits GUIDED THERAPEUTICS: Granted Additional Key Patent for LuViva H&M OIL: Dallas Judge Rules in Suit Against Former Manager HARLAND CLARKE: Debt Financed Dividend No Impact on Moody's CFR HERCULES OFFSHORE: Posts $6.6-Mil. Net income in Second Quarter HYDROCARB ENERGY: Three Directors Resigned INTERLEUKIN GENETICS: 2 Directors Elected at Annual Meeting KEMET CORP: Incurs $3.5 Million Net Loss in Second Quarter KEY SAFETY: Moody's Rates Upsized $525MM 1st Lien Loan 'Ba2' KID BRANDS: Committee Opposes DIP Loan From Salus LEO MOTORS: Appoints Jeong Youl Choi as Chief Financial Officer LEO MOTORS: Asher Enterprises Holds 5% Equity Stake LPATH INC: Reports Interim Data From Phase 2a ASONEP Study MCCLATHCY CO: Posts $91.6 Million Net Income in Second Quarter MICRON TECHNOLOGY: Moody's Rates New Senior Unsecured Notes 'Ba3' MINT LEASING: Sells $158,500 Convertible Note to KBM Worldwide MOMENTIVE SPECIALTY: 2014 Annual Incentive Plan Okayed MOTORS LIQUIDATION: GUC Trust Report for June 30 Quarter Filed NATIONAL FINANCIAL: Moody's Keeps B3 CFR Over Increased Term Loan NAVISTAR INTERNATIONAL: Appoints SVP and Corporate Controller NAVISTAR INTERNATIONAL: Amends ABL Credit Agreement with BofA NEWLEAD HOLDINGS: Voluntarily Delists Common Shares from NASDAQ NORTEL NETWORKS: U.S. Bondholders Agree to $1B Bond Interest Cap OVERLAND STORAGE: To Offer 1.4MM Shares Under Incentive Plan OVERLAND STORAGE: Files Financial Statements of Tandberg OVERSEAS PAN-KOREAN: Voluntary Chapter 11 Case Summary PASCO COUNTY, FL: Moody's Puts Ba3 Bonds Rating on Review PEABODY ENERGY: Moody's Lowers Corporate Family Rating to 'Ba3' PENINSULA HOSPITAL: Second Amended Motion to Hire BDO USA Approved PLUG POWER: Two Directors Elected at Annual Meeting PRECISION OPTICS: MHW Partners Holds 5.6% Equity Stake PREFERRED SANDS: K.K.R. Provides Financing QBS HOLDING: Moody's Assigns 'B2' Corporate Family Rating QUANTUM CORP: Incurs $4.3 Million Net Loss in Fiscal 1st Quarter RADIO DESIGN: Case Summary & 20 Largest Unsecured Creditors RADIOSHACK CORP: Fails to Comply with NYSE's $1 Bid Price Rule REGENT PURCHASER: Moody's Rates $130MM 2nd Lien Term Loan 'Caa1' REMEDENT INC: Vandelanotte Raises Going Concern Doubt RICEBRAN TECHNOLOGIES: Baruch Halpern Holds 9.2% Equity Stake RICEBRAN TECHNOLOGIES: Shoshana Halpern Reports 7.8% Stake SINCLAIR BROADCAST: Roystone Capital Holds 5.3% of Class A Shares SJC INC: Meeting to Form Creditors' Panel Set for July 31 TEM ENTERPRISES: Hires McDonald Carano as Bankruptcy Counsel TRAVELPORT LIMITED: Unit to Sell 34 Million Shares of Orbitz TRULAND GROUP: Shuts Down, Will Liquidate in Bankruptcy UNITED AIRLINES: Moody's Rates $500MM Incremental Loan 'Ba2' UNI-PIXEL INC: To Hold Call on 2nd Quarter Results Aug. 7 USG CORP: Posts $57 Million Net Income in Second Quarter USG CORP: Gates Capital Reports 5.1% Equity Stake USG CORP: Reclassifies Board of Directors VERIS GOLD: U.S. Court Recognizes Canadian Restructuring VERSO PAPER: Amends Subordinated Debt Exchange Offer VERITEQ CORP: Enters Into Consulting and Marketing Agreements VIGGLE INC: Study Finds Viggle Improves TV Ad Effectiveness WALTER ENERGY: D. Cartwright No Longer Heads Canadian Operations WARNER MUSIC: 2010 International Agreement Assigned to WMIS WILLIAM C. INC: Case Summary & Unsecured Creditor YOUR EVENT: Incurs $433K Net Loss for May 31 Quarter ZOGENIX INC: Amends Annual Incentive Plan for CEO and President * BofA, Justice Dept. Remain Far Apart on Mortgage Pact * Argentine Creditors Seek Names to Stop Deal-Killer Clause * Argentine Default Drama Nears Critical Stage * UK High Court Rules 'Secret Fees' Go to Wronged Investor * Akerman Adds Three New Partners to Chicago Office * FTI Consulting Bags Eight Global M&A Turnaround Atlas Awards * Jeff Nerland Joins SierraConstellation as Senior Director * Legal 500 Recognizes Mintz Levin's Bankruptcy Practice * BOND PRICING: For Week From July 21 to July 25, 2014 ********* 1494-1496 CIA: Case Summary & 2 Unsecured Creditors --------------------------------------------------- Debtor: 1494-1496 CIA, LLC 4078 Bedford Ave Brooklyn, NY 11229 Case No.: 14-43767 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: July 24, 2014 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Hon. Nancy Hershey Lord Debtor's Counsel: Joel Alan Gaffney, Esq. LAW OFFICE OF GREGORY MESSER, PLLC 26 Court Street, Suite 2400 Brooklyn, NY 11242 Tel: 718-858-1474 Fax: 718-797-5360 Email: joel.alan.gaffney@gmail.com - and - Gregory M. Messer, Esq. LAW OFFICE OF GREGORY MESSER, PLLC 26 Court Street, Suite 2400 Brooklyn, NY 11242 Tel: (718) 858-1474 Fax: (718) 797-5360 Email: gremesser@aol.com Total Assets: $2.13 million Total Liabilities: $1.6 million The petition was signed by Zina Yevdeyev, member. A list of the Debtor's two largest unsecured creditors is available for free at http://bankrupt.com/misc/nyeb14-43767.pdf ADELPHIA COMMUNICATIONS: ART Seeks to Extend Term to 2016 --------------------------------------------------------- The Adelphia Recovery Trust on July 24 disclosed that it has filed a motion with the United States Bankruptcy Court for the Southern District of New York seeking approval to extend the term of the ART through December 31, 2016. As set forth in greater detail in the ART's motion, Adelphia's plan of reorganization established an initial termination date of February 14, 2012 for the ART, subject to the Trustee's right to extend the term with the Bankruptcy Court's approval. The termination date was extended to December 31, 2014 with the Bankruptcy Court's approval. Although the Trust has resolved several causes of action and distributed $275 million to date to interest holders, the FPL cause of action has not been and is not likely to be resolved by December 31, 2014, when the ART's term expires. An extension will provide additional time to resolve the FPL cause of action and permit an orderly termination of the ART. The ART's motion is available in the "Important Documents-Adelphia Recovery Trust" section of Adelphia's Web site at http://www.adelphiarestructuring.com/ Holders may direct questions to creditor.inquiries@adelphia.com About Adelphia Recovery Trust Adelphia Recovery Trust is a Delaware Statutory Trust that was formed pursuant to the First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization of Adelphia Communications Corporation and Certain Affiliated Debtors, which became effective February 13, 2007. The ART holds certain litigation claims transferred pursuant to the Plan against various third parties and exists to prosecute the causes of action transferred to it for the benefit of holders of ART interests. About Adelphia Communications Based in Coudersport, Pennsylvania, Adelphia Communications Corporation was once the fifth-biggest cable company. Adelphia served customers in 30 states and Puerto Rico, and offered analog and digital video services, Internet access and other advanced services over its broadband networks. Adelphia collapsed in 2002 after disclosing that founder John Rigas and his family owed $2.3 billion in off-balance-sheet debt on bank loans taken jointly with the company. Mr. Rigas was sentenced to 12 years in prison, while son Timothy 15 years. Adelphia Communications and its more than 200 affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 02-41729) on June 25, 2002. Willkie Farr & Gallagher represented the Debtors in their restructuring effort. PricewaterhouseCoopers served as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman LLP and Klee, Tuchin, Bogdanoff & Stern LLP represented the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas-Managed Entities, were entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision LLC. The RME Debtors filed for Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642) on March 31, 2006. Their cases were jointly administered under Adelphia Communications and its debtor-affiliates' Chapter 11 cases. The Bankruptcy Court confirmed the Debtors' Joint Chapter 11 Plan of Reorganization on Jan. 5, 2007. That plan became effective on Feb. 13, 2007. The Adelphia Recovery Trust, a Delaware Statutory Trust, was formed pursuant to the Plan. The Trust holds certain litigation claims transferred pursuant to the Plan against various third parties and exists to prosecute the causes of action transferred to it for the benefit of holders of Trust interests. Lawyers at Kasowitz, Benson, Torres & Friedman, LLP (NYC), represent the Adelphia Recovery Trust. ADVANCED MICRO DEVICES: Incurs $36-Mil. Net Loss in 2nd Quarter --------------------------------------------------------------- Advanced Micro Devices, Inc., reported a net loss of $36 million on $1.44 billion of net revenue for the three months ended June 28, 2014, as compared with a net loss of $74 million on $1.16 billion of net revenue for the three months ended June 29, 2013. For the six months ended June 28, 2014, the Company reported a net loss of $56 million on $2.83 billion of net revenue as compared with a net loss of $220 million on $2.24 billion of net revenue for the six months ended June 29, 2013. As of June 28, 2014, the Company had $4.24 billion in total assets, $3.74 billion in total liabilities and $501 million in total stockholders' equity. "The second quarter capped off a solid first half of the year for AMD with strong revenue growth and improved financial performance," said Rory Read, AMD president and CEO. "Our transformation strategy is on track and we expect to deliver full year non-GAAP profitability and year-over-year revenue growth. We continue to strengthen our business model and shape AMD into a more agile company offering differentiated solutions for a diverse set of markets." About Advanced Micro Devices Sunnyvale, California-based Advanced Micro Devices, Inc., is a global semiconductor company. The Company's products include x86 microprocessors and graphics. Advanced Micro incurred a net loss of $83 million on $5.29 billion of net revenue for the year ended Dec. 28, 2013, as compared with a net loss of $1.18 billion on $5.42 billion of net revenue for the year ended Dec. 29, 2012. * * * In August 2013, Standard & Poor's Ratings Services revised its outlook on Advanced Micro to negative from stable. At the same time, S&P affirmed its 'B' corporate credit and senior unsecured debt ratings on AMD. As reported by the TCR on June 5, 2014, Fitch Ratings had upgraded the long-term Issuer Default Rating (IDR) for Advanced Micro Devices Inc. (NYSE: AMD) to 'B-' from 'CCC'. The upgrade primarily reflects AMD's improved financial flexibility from recent refinancing activity, which extends meaningful debt maturities until 2019. In the Feb. 4, 2013, edition of the TCR, Moody's Investors Service lowered Advanced Micro Devices' corporate family rating to B2 from B1. The downgrade of the corporate family rating to B2 reflects AMD's prospects for weaker operating performance and liquidity profile over the next year as the company commences on a multi- quarter strategic reorientation of its business in the face of a challenging macro environment and a weak PC market. ALION SCIENCE: Amends Comprehensive Refinancing Agreement --------------------------------------------------------- Alion Science and Technology has amended its refinancing support agreement with ASOF II Investments, LLC, and Phoenix Investment Adviser LLC, holders of a majority of the Company's outstanding 10 1/4% Senior Notes due February 2015, concerning the comprehensive refinancing of the Company's outstanding debt. The Company also has reached an understanding in principle with a large financial institution concerning placement of new first lien term loans in the aggregate principal amount of $285M subject to documentation and other conditions precedent. Under the terms of the RSA amendment, ASOF and Phoenix have agreed to support the principal terms of the new $285M first lien term loans, and they have increased their commitment for the RSA's contemplated second lien term loan from $50M to $70M, of which ASOF has committed an additional $5M and Phoenix has committed $15M, subject to certain terms and conditions contained in the RSA, as amended. The company also noted the success of its exchange offer, stating that 90.7% of unsecured noteholders have exchanged or tendered their current obligations as of July 22, 2014. The RSA amendment reduces the minimum tender condition in the exchange offer from 95% to 90%. "We appreciate the confidence shown in Alion's strategy and marketplace position through these multifaceted undertakings by significant financial asset managers. The agreements provide us with the financial foundation needed to sustain and grow our business for years to come," said Bahman Atefi, Chairman and CEO of Alion. "As always, we are fully committed to supporting our customers and working with our partners to deliver exceptional technology and engineering solutions. That dedication has always been, and will continue to be, Alion's hallmark." Results of Exchange Offer Alion Science announce updated results in connection with its exchange offer, consent solicitation and unit offering relating to its 10.25% Senior Notes due 2015 and the further extension of the Early Tender Date and the Expiration Date. The transactions are part of the previously announced transaction in which the Company is seeking to refinance its existing indebtedness. As of 5:00 p.m. on July 23, 2014, according to Global Bondholder Services Corporation, the Information and Exchange Agent, approximately $ 213,241,000, or 90.74%, of the aggregate principal amount of outstanding Unsecured Notes had been validly tendered for exchange and not withdrawn in the exchange offer and consent solicitation. The Company has extended the Early Tender Date from 5:00 p.m., New York City time on July 18, 2014 to 5:00 p.m., New York City time, on Aug. 1, 2014. The Company has also extended the Expiration Date of the exchange offer and consent solicitation from 9:00 a.m., New York City time, on July 24, 2014, to 9:00 a.m., New York City time, on Aug. 11, 2014. The Company has extended the expiration date of the unit offering to 5:00 p.m., New York City time, on Aug. 1, 2014. As of 5:00 p.m. on July 23, 2014, according to Global Bondholder Services Corporation, holders of Unsecured Notes have elected to purchase approximately 93 units in the unit offering for an aggregate purchase price of approximately $55,800. The election to purchase units in the unit offering cannot be revoked, except as required by law. For each $1,000 principal amount of Unsecured Notes accepted for exchange in the exchange offer that are validly tendered (and not validly withdrawn) at or prior to 5:00 p.m., New York City time, on Aug. 1, 2014, holders will receive an additional $15.00 in cash. Holders who tender after 5:00 p.m., New York City time, on August 1, 2014, but prior to the Expiration Date, will not be entitled to receive the Early Tender Payment. As of 5:00 p.m. on May 28, 2014, holders were no longer entitled to withdraw tendered Unsecured Notes, except as required by law. Further, since the second supplemental indenture has been entered into, holders may not revoke the related consents, except as required by law. The offer is being made only by means of a prospectus, as supplemented. Copies of the prospectus, as supplemented, and the transmittal materials may be obtained free of charge, by contacting the Information and Exchange Agent at the following address: Global Bondholder Services By Facsimile (for eligible institutions only): (212) 430- 3775/3779 Confirmation: (212) 430-3774 By Phone: 866-470-3900 (toll free) By Mail, Overnight Courier Hand Delivery: 65 Broadway, Suite 404 New York, New York 10006 Attn: Corporate Actions Goldman, Sachs & Co. has been retained to act as the dealer manager and solicitation agent in connection with the exchange offer and consent solicitation. The information and exchange agent for the Transactions is Global Bondholder Services Corporation. Questions regarding the procedures for participating in the Transactions, requests for assistance regarding the process, and requests for additional copies of the prospectus and transmittal materials governing the Transactions may be directed to Global Bondholder Services. Additional information is available for free at: http://is.gd/vesMOR About Alion Science Alion Science and Technology Corporation, based in McLean, Virginia, is an employee-owned company that provides scientific research, development, and engineering services related to national defense, homeland security, and energy and environmental analysis. Particular areas of expertise include communications, wireless technology, netcentric warfare, modeling and simulation, chemical and biological warfare, program management. Alion Science has been reporting losses for four consecutive years from Sept. 30, 2010, to Sept. 30, 2013. In 2013, Alion Science incurred a net loss of $36.59 million. Deloitte & Touche LLP, in McLean, Virginia, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2013. The independent auditors noted that the Company does not expect to be able to repay its existing debt at their scheduled maturities. The Company's financing needs, its recurring net losses, and its excess of liabilities over assets raise substantial doubt about its ability to continue as a going concern, the auditors stated. As of March 31, 2014, the Company had $610.99 million in total assets, $816.34 million in total liabilities, $61.03 million in redeemable common stock, $20.78 million in common stock warrants, $130,000 in accumulated other comprehensive loss and a $287.29 million accumulated deficit. Bankruptcy Warning "The Company's high debt levels, of which $332.5 million matures on November 1, 2014 and Alion's recurring losses will likely make it more difficult for Alion to raise capital on favorable terms and could hinder its operations. Further, default under the Unsecured Note Indenture or the Secured Note Indenture could allow lenders to declare all amounts outstanding under the Wells Fargo Agreement, the Secured Notes and the Unsecured Notes to be immediately due and payable. Any event of default could have a material adverse effect on our business, financial condition and operating results if creditors were to exercise their rights, including proceeding against substantially all of our assets that secure the Wells Fargo Agreement and the Secured Notes, and will likely require us to invoke insolvency proceedings including, but not limited to, a voluntary case under the U.S. Bankruptcy Code," the Company said in the Quarterly Report for the period ended March 31, 2014. * * * As reported by the TCR on March 10, 2014, Standard & Poor's Ratings Services said it lowered its corporate credit rating on McLean, Va.-based Alion Science and Technology Corp. to 'CC' from 'CCC+'. "The ratings downgrade reflects a capital structure that matures within 12 months, a currently 'weak' liquidity assessment, which we revised from 'less than adequate', and our expectation that we would classify an exchange offer or similar restructuring undertaken by Alion as distressed," said Standard & Poor's credit analyst Martha Toll-Reed. In the May 23, 2014, edition of the TCR, Moody's Investors Service affirmed, among other things, Alion Science & Technology Corporation's ratings including the Caa2 Corporate Family Rating. The affirmation of Alion's Caa2 corporate family rating reflects the company's continued high leverage and weak interest coverage metrics that are not anticipated to improve meaningfully in the near-term, Moody's said. 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 96.15 cents-on-the-dollar during the week ended Friday, July 25, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.21 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. AMERICAN AIRLINES: Reports $864MM Net Profit in 2nd Quarter ----------------------------------------------------------- American Airlines Group Inc., for the second quarter 2014, reported a record GAAP net profit of $864 million. This compares to a GAAP net profit of $220 million in the second quarter 2013, for AMR Corporation prior to the merger. The Company believes it is more meaningful to compare year-over- year results for American Airlines and US Airways excluding special charges and on a combined basis, which is a non-GAAP formulation that combines the results for AMR Corporation and US Airways Group. On this basis, second quarter 2014 net profit excluding net special charges was $1.5 billion, a record for any quarter in the history of the Company. This represents a 114 percent improvement over the combined non-GAAP net profit of $681 million excluding net special charges for the same period in 2013. "We are very pleased to report the highest quarterly profit in the history of American Airlines," said Chairman and CEO Doug Parker. "Our merger is off to a great start and our 100,000 team members are doing a wonderful job working together to take care of our customers. "We are also pleased to announce a capital deployment program that reduces our debt, provides additional pension contributions and returns capital to shareholders. The fact that we are able to implement this program while still funding our significant product improvements, fleet renewal program and integration costs is further evidence of the success of our merger. We have much hard work ahead, but we are extremely encouraged by the great work being done by our team members." Revenue and Cost Comparisons Total revenues in the second quarter were a record $11.4 billion, up 10.2 percent versus the second quarter 2013 on a combined basis, on a 3.1 percent increase in total available seat miles (ASMs). Driven by a record yield of 17.34 cents, up 6.5 percent year-over-year, consolidated passenger revenue per ASM (PRASM) was also a record at 14.57 cents, up 5.9 percent versus the second quarter 2013 on a combined basis. Total operating expenses in the second quarter were $10.0 billion, up 7.0 percent over combined second quarter 2013. Second quarter mainline cost per available seat mile (CASM) was 13.61 cents, up 3.9 percent on a 3.5 percent increase in mainline ASMs versus combined second quarter 2013. Excluding special charges and fuel, mainline CASM was up 2.2 percent compared to the combined second quarter 2013, at 8.55 cents. Regional CASM excluding special charges and fuel was 15.80 cents, up 5.2 percent on a 0.4 percent decrease in regional ASMs versus combined second quarter 2013. Liquidity As of June 30, 2014, American had approximately $10.3 billion in total cash and short-term investments, of which $882 million was restricted. The Company also has an undrawn revolving credit facility of $1.0 billion. During the quarter, the Company repaid $502 million of debt obligations, which includes approximately $175 million for the settlement of its 7.25% convertible notes with cash. The Company also prepaid $113 million of obligations associated with aircraft debt, $51 million associated with special facility revenue bonds and also used $630 million of cash to purchase aircraft that were previously being leased to the Company. At June 30, 2014, approximately $791 million of the Company's unrestricted cash balance was held in Venezuelan bolivars, valued at the weighted average applicable exchange rate of 6.53 bolivars to the dollar. This includes approximately $94 million valued at 4.3 bolivars, approximately $611 million valued at 6.3 bolivars and approximately $86 million valued at 10.6 bolivars, with the rate depending on the date the Company submitted its repatriation request to the Venezuelan government. In the first quarter of 2014, the Venezuelan government announced that a newly implemented system (SICAD I) will determine the exchange rate (which fluctuates as determined by weekly auctions and at June 30, 2014 was 10.6 bolivars to the dollar) for repatriation of cash proceeds from ticket sales after January 1, 2014, and introduced new procedures for approval of repatriation of local currency. The Company is continuing to work with Venezuelan authorities regarding the timing and exchange rate applicable to the repatriation of funds held in local currency. However, pending further repatriation of funds, and due to the significant decrease in demand for air travel resulting from the effective devaluation of the bolivar, the Company recently significantly reduced capacity in this market. The Company is monitoring this situation closely and continues to evaluate its holdings of Venezuelan bolivars for potential impairment. Capital Deployment Program The Company also announced a capital deployment program intended to efficiently allocate cash balances over and above those required to fund its business. The program has three key components: Debt/Lease Prepayments: Since the merger closed in December 2013, the Company has prepaid $420 million of aircraft debt and bond obligations. In addition, the Company plans to prepay $480 million of special facility revenue bond obligations by the end of 2014. It is anticipated that these prepayments will represent a reduction in the Company's debt going forward. The Company has also used $630 million of cash to purchase aircraft that were previously leased to the Company and anticipates utilizing an additional $370 million of cash in this manner through the remainder of 2014. In addition, the Company has called for redemption of the remaining $900 million principal amount of the 7.5% senior notes due March 15, 2016. In total, these steps represent approximately $2.8 billion of prepayments that will be completed by the end of 2014. Pension Funding: The Company plans to make supplemental contributions of $600 million to its defined benefit plans in 2014. These contributions would be above and beyond the $120 million minimum required contributions for 2014. Return to Shareholders: The program includes a share repurchase program and the initiation of a quarterly dividend. The Company's Board of Directors authorized a $1.0 billion share repurchase program to be completed no later than December 31, 2015. The Board also declared a dividend of $0.10 per share for shareholders of record as of August 4, 2014. The dividend will be paid on August 18, 2014. This is the first cash dividend declared at American Airlines since 1980. Shares repurchased under the program announced above may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades or accelerated share repurchase transactions. Any such repurchases will be made from time to time subject to market and economic conditions, applicable legal requirements and other relevant factors. The program does not obligate the Company to repurchase any specific number of shares or continue a dividend for any fixed period, and may be suspended at any time at management's discretion. Additional Notable Accomplishments Merger Integration Developments US Airways joined American in the trans-Atlantic joint business agreement with British Airways, Iberia and Finnair and codeshare agreements with British Airways, Iberia and one world alliance partner airberlin Combined operations at 72 airports since the merger Began harmonizing its network by aligning flying between its hubs. The changes allow the Company to replace smaller regional aircraft with larger mainline aircraft and to redeploy regional jets to other markets to better match aircraft size with customer demand in small and medium sized communities Announced new mileage redemption options for American Airlines AAdvantage(R) and US Airways Dividend Miles(R) members, along with new checked bag policies, and began to align the First and Business Class experience across the airline Launched new reciprocal upgrade benefits for elite-level members Conducted first joint Flight Attendant Training sessions with newly hired flight attendants from both airlines Reached three agreements covering more than 11,000 US Airways mechanics, fleet service agents and maintenance training specialists with the International Association of Machinists union Fleet and Network Developments As part of its plan to modernize its fleet, the Company inducted 21 new aircraft during the second quarter Expanded its European presence with new, seasonal summer service between its hub at Charlotte Douglas International Airport and Barcelona, Brussels, Lisbon and Manchester, U.K. Strengthened its presence in the Asia-Pacific region with new nonstop service between Dallas/Fort Worth and Hong Kong and Shanghai Announced twelve new routes in the United States and Canada from Dallas/Fort Worth, Chicago O'Hare, Los Angeles, Charlotte, N.C., Philadelphia and Phoenix, including service between DFW and new destination, Bismarck, N.D. The Company also began service between DFW and Edmonton, Alberta Other Developments Distributed $5.5 million in operational incentive payouts to employees for on-time departures in the month of April; this distribution of $50 per employee is part of the Company's Triple Play program which measures operational performance as reported in the DOT's Air Travel Consumer Report (ATCR). To date, the Company's employees have earned $16.5 million in operational incentive payouts Honored with two awards from Airfinance Journal, including the 2013 Overall "Deal of the Year" for its merger with US Airways, and the 2013 Airline "Treasury Team of the Year" for its work on American's debt and lease restructuring, a major aircraft order and other financing Employees donated more than 13,000 hours to numerous projects in the second quarter. In addition, the Company donated more than $3 million of travel to organizations including American Fallen Soldiers, the Gary Sinise Foundation, the San Diego Air and Space Museum, and Carry the Load Recognized four employees with the 2014 Earl G. Graves Award for Leadership in Diversity for influencing positive change, setting an example and leaving a lasting impact on those around them Special Items In the second quarter, the Company recognized a total of $592 million in net special charges, including: $253 million net special operating charges, which principally included $163 million of merger integration expenses, a net $38 million charge for bankruptcy related settlement obligations, $37 million in charges relating to the buyout of leases associated with certain aircraft, and $15 million of other special charges Net $337 million non-cash tax charge, consisting primarily of a $330 million non-cash tax charge related to the Company's sale of its portfolio of fuel hedging contracts that were scheduled to settle on or after June 30, 2014. This charge reverses a non-cash tax provision which was recorded in Other Comprehensive Income (OCI), a subset of stockholder's equity, principally in 2009. The provision represents the tax effect associated with gains recorded in OCI principally in 2009 due to a net increase in the fair value of the Company's fuel hedging contracts About American Airlines AMR Corp. and its subsidiaries including American Airlines filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost- cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so- called U.S. legacy airlines to seek court protection from creditors. It was the third largest airline in the United States at the time of the bankruptcy filing. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. The Retiree Committee is represented by Jenner & Block LLP's Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B. Hankin, Esq. AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The bankruptcy judge on Sept. 12, 2013, confirmed AMR Corp.'s plan to exit bankruptcy through a merger with US Airways. By distributing stock in the merged airlines, the plan is designed to pay all creditors in full, with interest. Judge Sean Lane confirmed the Plan despite the lawsuit filed by the U.S. Department of Justice and several states' attorney general complaining that the merger violates antitrust laws. In November 2013, AMR and the U.S. Justice Department a settlement of the anti-trust suit. The settlements require the airlines to shed 104 slots at Reagan National Airport in Washington and 34 at LaGuardia Airport in New York. AMR stepped out of Chapter 11 protection after its $17 billion merger with US Airways was formally completed on Dec. 9, 2013. AMERICAN AIRLINES: Capital Deployment Plan No Impact on B1 CFR -------------------------------------------------------------- Moody's Investors Service said the capital deployment plan that American Airlines Group Inc. announced earlier balances distributions amongst various debt holders and shareholders and is credit positive with no effect on the company's debt ratings, including the B1 Corporate Family rating. American Airlines Group Inc. is the holding company for American Airlines and US Airways. Together with wholly owned and third- party regional carriers operating as American Eagle and US Airways Express, the airlines operate an average of nearly 6,700 flights per day to 339 destinations in 54 countries from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. The company had pro forma revenue of about $40.4 billion in 2013. AMERICAN APPAREL: Committee Adopts 2014 Severance Plan ------------------------------------------------------ The Compensation Committee of the Board of Directors, on July 21, 2014, adopted the American Apparel, Inc. Severance Plan for the benefit of certain employees of the Company, including Martin Bailey, who is a named executive officer. The Severance Plan provides a number of months of salary continuation and COBRA reimbursement for Participants (twelve (12) months in the case of Mr. Bailey), as well as full vesting of equity awards, on a termination without cause or resignation for good reason, each as defined in the Severance Plan. A copy of the American Apparel, Inc. Severance Plan is available for free at http://is.gd/urL6Cg Meanwhile, the Rights Agreement, dated as of June 27, 2014, between American Apparel, Inc., and Continental Stock Transfer & Trust Company, as Rights Agent, as amended on July 9, 2014, expired on July 24, 2014. About American Apparel Los Angeles, Calif.-based American Apparel, Inc. (NYSE Amex: APP) -- http://www.americanapparel.com/-- is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel. As of September 2010, American Apparel employed over 10,000 people and operated 278 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea and China. Amid liquidity problems and declining sales, American Apparel in early 2011 reportedly tapped law firm Skadden, Arps, Slate, Meagher & Flom and investment bank Rothschild Inc. for advice on a restructuring. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Under the deal, the investors were buying 15.8 million shares of common stock at 90 cents apiece. The deal allows the investors to purchase additional 27.4 million shares at the same price. American Apparel reported a net loss of $106.29 million on $633.94 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $37.27 million on $617.31 million of net sales for the year ended Dec. 31, 2012. As of Dec. 31, 2013, the Company had $333.75 million in total assets, $411.15 million in total liabilities and a $77.40 million total stockholders' deficit. * * * As reported by the Troubled Company Reporter on Feb. 26, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating to 'CCC' from 'B-' on Los Angeles-based American Apparel Inc. The outlook is developing. The Troubled Company Reporter, on Nov. 21, 2013, reported that American Apparel Inc. had its corporate family rating cut one level to Caa2 by Moody's Investors Service. The clothing retailer's probability of default was also lowered one level and the outlook is negative. ASPECT SOFTWARE: Moody's Affirms B3 CFR & Changes Outlook to Neg. ---------------------------------------------------------------- Moody's Investors Service affirmed Aspect Software, Inc.'s corporate family rating of B3 and revised the company's ratings outlook to negative from stable. The ratings of the first and second lien debt were also affirmed. Ratings Rationale The outlook change to negative was driven by near term liquidity concerns as well as continued challenges in turning around the business. Liquidity is weak based on expectations of limited free cash flow over the next twelve months, limited cash on hand, and the near term maturity (May 2015) of the $30 million revolver ($20 million undrawn). The revolver also has a clean-up provision requiring paying down all outstanding amounts prior to September 30, 2014 (after which it will be available again). Although the company's restructuring expenses are expected to wind down in coming quarters, the company will likely need to rely on its revolving credit facility for near term liquidity needs including principal payments on its first lien debt. In addition covenant step downs over the upcoming quarters will be increasingly difficult to meet. The ratings could be downgraded if the company is unable to extend maturity of the revolver or reset covenant levels. The B3 rating continues to reflect Aspect's very high debt load at a time when the company faces challenges in turning around its revenues in the evolving contact center software market. Debt/EBITDA exceeds 7x based on March 31, 2014 results and excluding certain non-recurring items. Although Aspect is a long term leader in many segments of the contact center software market, the company has had considerable difficulty in offsetting declines in its legacy Signature business with its next generation products. And though the company continues to make strategic acquisitions to bolster its suite of contact center offerings, restructuring and integration costs have hampered the company's cash flow. Ratings could also be downgraded if revenues, EBITDA and free cash flow do not show signs of stabilizing and ultimately improving. Though unlikely in the near term, ratings could be upgraded if the company is able to grow revenues, EBITDA and cash flow and leverage is sustainably below 6x. The following ratings were affirmed: Corporate Family Rating -- B3 Probability of Default Rating -- B3-PD First lien term loan due 2016 -- B1, LGD2 Delayed draw first lien term loan due 2016 -- B1, LGD2 Second lien notes due 2017 -- Caa2, LGD5 Outlook: revised to Negative from Stable The principal methodology used in this rating was Global Software Industry published in October 2012. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Aspect is a provider of software systems for call centers with $440 million of revenue for the twelve months ended March 31, 2014. The company, headquartered in Phoenix, AZ, is owned by private equity firm Golden Gate Capital. ASPEN GROUP: Chairman Extends Due Dates of Outstanding Notes ------------------------------------------------------------ Mr. Michael Mathews, the Chairman of the Board and chief executive officer of Aspen Group, Inc., extended the due dates of his three outstanding notes to Jan. 1, 2016. Prior to the amendments, the outstanding notes had expiration dates of April 2, 2015. The securities were issued and sold in reliance upon the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b) promulgated thereunder. About Aspen Group Denver, Colo.-based Aspen Group, Inc., was founded in Colorado in 1987 as the International School of Information Management. On Sept. 30, 2004, it was acquired by Higher Education Management Group, Inc., and changed its name to Aspen University Inc. On May 13, 2011, the Company formed in Colorado a subsidiary, Aspen University Marketing, LLC, which is currently inactive. On March 13, 2012, the Company was recapitalized in a reverse merger. Aspen's mission is to become an institution of choice for adult learners by offering cost-effective, comprehensive, and relevant online education. Approximately 88 percent of the Company's degree-seeking students (as of June 30, 2012) were enrolled in graduate degree programs (Master or Doctorate degree program). Since 1993, the Company has been nationally accredited by the Distance Education and Training Council, a national accrediting agency recognized by the U.S. Department of Education. The Company reported a net loss of $6.01 million on $2.68 million of revenues for the year ended Dec. 31, 2012, as compared with a net loss of $2.13 million on $2.34 million of revenues during the prior year. As of Jan. 31, 2014, the Company had $3.67 million in total assets, $5.29 million in total liabiities and a $1.62 million total stockholders' deficit. Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the transition period ending April 30, 2013. The independent auditors noted that the Company has a net loss allocable to common stockholders and net cash used in operating activities for the four months ended April 30, 2013, of $1,402,982 and $918,941, respectively, and has an accumulated deficit of $12,740,086 at April 30, 2013. These matters raise substantial doubt about the Company's ability to continue as a going concern. ATLANTIC CITY, NJ: Moody's Cuts General Obligation Rating to Ba1 ---------------------------------------------------------------- Moody's Investors Service has downgraded Atlantic City's (NJ) underlying general obligation rating to Ba1 from Baa2, affecting $245 million of outstanding general obligation parity debt. The outlook remains negative. The outstanding debt is secured by the city's unlimited general obligation tax pledge. Summary Ratings Rationale The downgrade to Ba1 reflects the city's significantly weakened tax base, revenue-raising ability, and broader economic outlook. These result from ongoing casino revenue declines, expected near- term casino closures, and the impact of sizable casino tax appeals, all of which has stemmed from increased competition from casinos in neighboring states. The rating also factors in the city's still-substantial tax base dominated by a pressured gaming industry (nearly 70% of assessed values), narrow financial cushion, very weak residential socioeconomics and an increasing debt burden. The negative outlook incorporates Moody's expectation that regional competition for casino gaming will further weaken Atlantic City casino revenues, and that tax appeals and casino closures will continue to reduce the city's taxable base and strain the city's weak financial position. The outlook also considers the city's above-average debt burden in light of significant new debt issuance plans to fund recently settled tax appeals. Strengths -- Large tax base with beachfront, though seasonally limited -- Ongoing commercial developments and renovations -- State supervision of budgets and involvement in city economic development -- Plans to control operational expenditure growth through fiscal 2016 Challenges -- Very high taxpayer concentration in an industry undergoing significant contraction -- High debt burden will increase to fund significant tax appeals -- Weak and declining socioeconomic wealth levels and high poverty and unemployment rates -- Narrow financial cushion, with minimal Current Fund reserves relative to annual revenues Outlook The negative outlook incorporates Moody's expectation that regional competition for casino gaming will further weaken Atlantic City economic prospects. Declining casino revenues and pending tax appeals will continue to reduce the city's taxable base and strain the city's weak financial position. The outlook also considers the city's above-average debt burden in light of significant new debt issuance plans to fund ongoing tax appeal settlements. What Could Make The Rating Go UP (Removal Of Negative Outlook) -- Attainment of structural balance (net of deferred charges), increasing fund balances to adequate levels -- Significant diversification of the tax base -- Growth in the City's casino gaming revenues despite competition from neighboring states What Could Make the Rating Go DOWN -- Booking of additional deferred charges and/or further draw downs of already narrowed reserves -- Further erosion of the tax base -- Material increases in debt burden -- Need for cashflow borrowing The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014. AXION INTERNATIONAL: Amends Tender Offer Statement with SEC ----------------------------------------------------------- Axion International Holdings, Inc., amended its tender offer statement on Schedule TO relating to the offer by the Company to exchange warrants to purchase no par value shares of common stock for shares of common Stock. The number of shares of Common Stock exchanged for the Warrants will equal 14.17707 shares for every $10.00 of value attributed to the Warrants tendered in exchange. The value of the Warrants will be based upon the Black-Scholes Option Pricing Model with the value assigned to the Company's outstanding Warrants set forth on Schedule A to the Offer to Exchange, upon the terms and conditions and subject to the conditions described in the Offer to Exchange and in the related Letter of Transmittal. This tender offer is being made to all holders of the Company's outstanding Warrants none of which are publicly traded Warrants. These Warrants have been issued between Dec. 11, 2008, and April 8, 2014. The Warrants are currently exercisable for 47,660,256 shares of common stock. A full-text copy of the amended Schedule TO is available at: http://is.gd/vNSq2D About Axion International New Providence, N.J.-based Axion International Holdings, Inc. (OTC BB: AXIH) - http://www.axionintl.com/-- is the exclusive licensee of patented and patent-pending technologies developed for the production of structural plastic products such as railroad crossties, pilings, I-beams, T-Beams, and various size boards including a tongue and groove design that are utilized in multiple engineered design solutions such as rail track, rail and tank bridges (heavy load), pedestrian/park and recreation bridges, marinas, boardwalks and bulk heading to name a few. AXION International reported a net loss of $24.19 million on $6.63 million of revenue in 2013, compared to a net loss of $5.43 million on $5.34 million of revenue in 2012. As of March 31, 2014, the Company had $16.53 million in total assets, $34.37 million in total liabilities, $6.94 million in 10% convertible preferred stock and a $24.78 million total stockholders' deficit. Following the 2013 results, BDO USA, LLP, expressed substantial doubt about the Company's ability to continue as a going concern, stating that the Company has suffered recurring losses from operations and has working capital and net capital deficiencies. BDO USA, LLP also issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. B/E AEROSPACE: EMTEQ/Fisher Deals No Impact on Moody's Ba1 CFR -------------------------------------------------------------- Moody's Investors Service said that B/E Aerospaces' debt-financed acquisitions of EMTEQ and Fischer are viewed as a credit negative. The ratings, including the Ba1 corporate family rating, are not affected at this time. However, the rating outlook is negative as B/E's plans for separation into two businesses continue to develop. BANK OF THE CAROLINAS: Completes $45.8 Million Private Placement ---------------------------------------------------------------- Bank of the Carolinas Corporation announced the successful completion of a private placement of 458,132,991 shares of newly issued common stock at a price of 10 cents per share to institutional and accredited investors. The Company intends to use the proceeds of the private placement to repurchase preferred stock and other obligations of the Company, and to restore its banking subsidiary to well-capitalized status. The Company plans to use approximately $34.8 million of the proceeds from the private placement to inject new capital into its bank subsidiary, Bank of the Carolinas. After the capital infusion, the bank's regulatory leverage capital ratio is expected to be approximately 10%, which is considered well-capitalized. The new capital will satisfy a requirement of the consent order issued by the Federal Deposit Insurance Corporation and the North Carolina Commissioner of Banks in 2011. In connection with the private placement, the Company plans to repurchase all of its Series A Cumulative Perpetual Preferred Stock issued through the Troubled Asset Relief Program from the U.S. Treasury. The Company also plans to repurchase all of its Floating Rate Trust Preferred Securities and a subordinated note from the holders of those securities. Following the private placement and the planned repurchase of TARP, trust preferred securities and the subordinated note, Bank of the Carolinas Corporation would no longer have any preferred stock or debt obligations outstanding. Stephen R. Talbert, chief executive officer of the Company, commented, "The private placement is the culmination of four years of effort by many individuals working tirelessly on behalf of the Company. We are pleased that the capital raised in the private placement will enable Bank of the Carolinas to continue to fulfill its mission to provide banking services to the customers and communities it serves." FIG Partners, LLC, served as placement agent for the transaction, and The Hutchison Company served as the Company's financial advisor. Wyrick Robbins Yates & Ponton LLP acted as legal counsel to the Company, and Alston + Bird LLP acted as legal counsel to FIG Partners. About Bank of the Carolinas Mocksville, North Carolina-based Bank of the Carolinas Corporation was formed in 2006 to serve as a holding company for Bank of the Carolinas. The Bank's primary market area is in the Piedmont region of North Carolina. Turlington and Company, LLP, in Lexington, North Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring credit losses that have eroded certain regulatory capital ratios. As of Dec. 31, 2013, the Company is considered undercapitalized based on their regulatory capital level. This raises substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss available to common stockholders of $2.33 million in 2013, a net loss available to common stockholders of $5.53 million in 2012 and a net loss available to common stockholders of $29.18 million in 2011. The Company's balance sheet at March 31, 2014, showed $428.05 million in total assets, $426.06 million in total liabilities, and stockholders' equity of $1.99 million. BANK OF THE CAROLINAS: EJF Capital Reports 9.8% Equity Stake ------------------------------------------------------------ In a Schedule 13G filed with the U.S. Securities and Exchange Commission, EJF Capital LLC and its affiliates disclosed that as of July 16, 2014, they beneficially owned 44,935,687 shares of common stock of Bank of the Carolinas Corporation representing 9.8 percent of the shares outstanding. A full-text copy of the regulatory filing is available for free at http://is.gd/sz2pEJ About Bank of the Carolinas Mocksville, North Carolina-based Bank of the Carolinas Corporation was formed in 2006 to serve as a holding company for Bank of the Carolinas. The Bank's primary market area is in the Piedmont region of North Carolina. Turlington and Company, LLP, in Lexington, North Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring credit losses that have eroded certain regulatory capital ratios. As of Dec. 31, 2013, the Company is considered undercapitalized based on their regulatory capital level. This raises substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss available to common stockholders of $2.33 million in 2013, a net loss available to common stockholders of $5.53 million in 2012 and a net loss available to common stockholders of $29.18 million in 2011. The Company's balance sheet at March 31, 2014, showed $428.05 million in total assets, $426.06 million in total liabilities, and stockholders' equity of $1.99 million. BANK OF THE CAROLINAS: Ithan Creek Reports 9.6% Equity Stake ------------------------------------------------------------ In a Schedule 13G filed with the U.S. Securities and Exchange Commission, Ithan Creek Master Investors (Cayman) L.P. and Wellington Hedge Management, LLC, disclosed that as of July 15, 2014, they beneficially owned 44,710,448 shares of common stock of Bank of the Carolinas Corporation, representing 9.68 percent of the shares outstanding. A full-text copy of the Schedule 13G is available for free at http://is.gd/CoMUO5 About Bank of the Carolinas Mocksville, North Carolina-based Bank of the Carolinas Corporation was formed in 2006 to serve as a holding company for Bank of the Carolinas. The Bank's primary market area is in the Piedmont region of North Carolina. Turlington and Company, LLP, in Lexington, North Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring credit losses that have eroded certain regulatory capital ratios. As of Dec. 31, 2013, the Company is considered undercapitalized based on their regulatory capital level. This raises substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss available to common stockholders of $2.33 million in 2013, a net loss available to common stockholders of $5.53 million in 2012 and a net loss available to common stockholders of $29.18 million in 2011. The Company's balance sheet at March 31, 2014, showed $428.05 million in total assets, $426.06 million in total liabilities, and stockholders' equity of $1.99 million. BANK OF THE CAROLINAS: BSOF Master Holds 6.5% Equity Stake ---------------------------------------------------------- In a Schedule 13G filed with the U.S. Securities and Exchange Commission, BSOF Master Fund L.P. and its affiliates disclosed that as of July 16, 2014, they beneficially owned 29,957,275 shares of common stock of Bank of the Carolinas Corporation representing 6.5 percent of the shares outstanding. A full-text copy of the regulatory filing is available at http://is.gd/bla7CZ About Bank of the Carolinas Mocksville, North Carolina-based Bank of the Carolinas Corporation was formed in 2006 to serve as a holding company for Bank of the Carolinas. The Bank's primary market area is in the Piedmont region of North Carolina. Turlington and Company, LLP, in Lexington, North Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring credit losses that have eroded certain regulatory capital ratios. As of Dec. 31, 2013, the Company is considered undercapitalized based on their regulatory capital level. This raises substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss available to common stockholders of $2.33 million in 2013, a net loss available to common stockholders of $5.53 million in 2012 and a net loss available to common stockholders of $29.18 million in 2011. The Company's balance sheet at March 31, 2014, showed $428.05 million in total assets, $426.06 million in total liabilities, and stockholders' equity of $1.99 million. BERNARD L. MADOFF: Trustee Spars With ERISA Investors Over Claims ----------------------------------------------------------------- Law360 reported that the trustee for Bernard L. Madoff Investment Securities LLC asked a U.S. bankruptcy court to deny 308 claims by investors who had placed money with Madoff indirectly through Employee Retirement Income Security Act plans. According to the report, trustee Irving H. Picard's counsel from Baker Hostetler LLP argued that the claimants, who had invested in any of four ERISA plans, weren't true customers of Madoff's, didn't have a broker-client relationship, and aren't entitled to the money under the Securities Investor Protection Act. The claimants' counsel said that Congress hadn't explicitly excluded indirect investors as claimants when SIPA was decided, the report related. The case is Securities Investor Protection Corporation v. Bernard L. Madoff Investment Securities LLC, case number 08-ap-01789 in the U.S. Bankruptcy 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. BON-TON STORES: Amends Employment Agreement with CEO ---------------------------------------------------- The Bon-Ton Stores, Inc., and Brendan L. Hoffman, president and chief executive officer of the Company, agreed to an amendment to Mr. Hoffman's existing employment agreement, dated Jan. 23, 2012, As previously disclosed, on March 5, 2014, Mr. Hoffman informed the Company's Board of Directors that he would not renew the Employment Agreement when its term expires on Feb. 7, 2015. The Amendment reflects an agreement between the Company and Mr. Hoffman regarding the terms of his employment with the Company until the Expiration Date. The Amendment amends the Employment Agreement to, among other things, provide that: * In the event the Company terminates Mr. Hoffman's employment prior to the Expiration Date, Mr. Hoffman will be entitled to receive the full amount of any Annual Bonus Mr. Hoffman would have otherwise earned for fiscal year 2014 had he been retained by the Company until the Expiration Date. * In the event the Company terminates Mr. Hoffman's employment prior to the Expiration Date, the restrictions on (i) the 100,000 unvested time-based vesting restricted shares granted to Mr. Hoffman pursuant to the Employment Agreement that would otherwise vest at the end of the Term; (ii) the 125,000 unvested performance-based vesting restricted shares granted to Mr. Hoffman pursuant to the Employment Agreement that would otherwise be earned during the Term; and (iii) up to 75,000 unvested performance-based vesting shares granted to Mr. Hoffman pursuant to that certain Restricted Stock Agreement, dated as of May 6, 2013, by and between the Company and Mr. Hoffman, that would otherwise be earned during the Term (subject to the attainment of the performance goals underlying such performance-based vesting restricted shares), will in each case lapse and such restricted shares will become fully vested; and all other equity based compensation awarded to Mr. Hoffman would be forfeited. * The terms relating to the termination of Mr. Hoffman's employment contained in Section 10 of the Employment Agreement are deleted in their entirety, and, in lieu thereof, the Amendment provides that the Company may terminate Mr. Hoffman's employment at will upon written notice by the Company to Mr. Hoffman. * The terms relating to the payments Mr. Hoffman was entitled to receive upon termination pursuant to Section 11 of the Employment Agreement are deleted in their entirety and, in lieu thereof, the Amendment provides that upon termination of employment prior to the Effective Date, for any reason, Mr. Hoffman will be entitled to receive only his salary and applicable COBRA payments through the Expiration Date. * Following Mr. Hoffman's employment with the Company, regardless of the reason or timing of Mr. Hoffman's termination, Mr. Hoffman will not be restricted from pursuing other employment opportunities. About Bon-Ton Stores The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 273 department stores, which includes 10 furniture galleries, in 25 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger's and Younkers nameplates and, in the Detroit, Michigan area, under the Parisian nameplate. Bon-Ton Stores reported a net loss of $3.55 million for the fiscal year ended Feb. 1, 2014, a net loss of $21.55 million for the year ended Feb. 2, 2013, and a net loss of $12.12 million for the year ended Jan. 28, 2012. The Company's balance sheet at May 3, 2014, showed $1.56 billion in total assets, $1.47 billion in total liabilities and $96.05 million in total shareholders' equity. * * * As reported by the TCR on May 15, 2013, Moody's Investors Service upgraded The Bon-Ton Stores, Inc.'s Corporate Family Rating to B3 from Caa1 and its Probability of Default Rating to B3-PD from Caa1-PD. "The upgrade of Bon-Ton's Corporate Family Rating considers the company's ability to drive modest same store sales growth as well as operating margin expansion beginning in the second half of 2012 and that these positive trends have continued, with the company reporting that its same store were positive, and EBITDA margins expanded, in the first fiscal quarter of 2013," said Moody's Vice President Scott Tuhy. As reported by the TCR on May 17, 2013, Standard & Poor's Ratings Services affirmed the 'B-' corporate credit rating on The Bon-Ton Stores Inc. BON-TON STORES: Gabelli Funds Holds 8.4% Equity Stake ----------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Gabelli Funds, LLC, and its affiliates disclosed that as of July 24, 2014, they beneficially owned 1,465,000 shares of common stock of The Bon-Ton Stores, Inc., representing 8.36 percent of the shares outstanding. The reporting persons previously owned 1,166,000 common shares at March 19, 2014. A full-text copy of the regulatory filing is available for free at http://is.gd/xqAdlk About Bon-Ton Stores The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 273 department stores, which includes 10 furniture galleries, in 25 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger's and Younkers nameplates and, in the Detroit, Michigan area, under the Parisian nameplate. Bon-Ton Stores reported a net loss of $3.55 million for the fiscal year ended Feb. 1, 2014, a net loss of $21.55 million for the year ended Feb. 2, 2013, and a net loss of $12.12 million for the year ended Jan. 28, 2012. The Company's balance sheet at May 3, 2014, showed $1.56 billion in total assets, $1.47 billion in total liabilities and $96.05 million in total shareholders' equity. * * * As reported by the TCR on May 15, 2013, Moody's Investors Service upgraded The Bon-Ton Stores, Inc.'s Corporate Family Rating to B3 from Caa1 and its Probability of Default Rating to B3-PD from Caa1-PD. "The upgrade of Bon-Ton's Corporate Family Rating considers the company's ability to drive modest same store sales growth as well as operating margin expansion beginning in the second half of 2012 and that these positive trends have continued, with the company reporting that its same store were positive, and EBITDA margins expanded, in the first fiscal quarter of 2013," said Moody's Vice President Scott Tuhy. As reported by the TCR on May 17, 2013, Standard & Poor's Ratings Services affirmed the 'B-' corporate credit rating on The Bon-Ton Stores Inc. BUILDERS FIRSTSOURCE: Reports $10.6 Million Net Income in Q2 ------------------------------------------------------------ Builders FirstSource, Inc., reported net income of $10.61 million on $426.54 million of sales for the three months ended June 30, 2014, as compared with a net loss of $48.20 million on $398.14 million of sales for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income of $7.22 million on $772.45 million of sales as compared with a net loss of $60.01 million on $717.85 million of sales for the same period during the prior year. As of June 30, 2014, the Company had $546.47 million in total assets, $521.92 million in total liabilities and $24.55 million in total stockholders' equity. Commenting on the company's results, Floyd Sherman, Builders FirstSource chief executive officer, stated, "We achieved our highest quarterly sales since 2006, as we ended the second quarter of 2014 with sales of $426.5 million. We were able to achieve this high level of sales even though sales were reduced by commodity deflation this quarter, as market prices for lumber and lumber sheet goods were, on average, 8.8 percent lower when compared to the second quarter of 2013. In addition, the U.S. Census Bureau reported actual single-family housing starts in the South Region, which encompasses all of our markets, increased just 0.6 percent compared to the second quarter of 2013. Our results are a prime example of how our market share gains of recent years, and the tremendous efforts of our employees, continue to have a positive impact." A full-text copy of the press release is available for free at: http://is.gd/rpYzoI About Builders FirstSource Headquartered in Dallas, Texas, Builders FirstSource Inc. -- http://www.bldr.com/-- supplies and manufactures building products for residential new construction. The Company operates in nine states, principally in the southern and eastern United States, and has 55 distribution centers and 51 manufacturing facilities, many of which are located on the same premises as its distribution facilities. Builders Firstsource reported a net loss of $42.69 million on $1.48 billion of sales for the year ended Dec. 31, 2013, as compared with a net loss of $56.85 million on $1.07 billion of sales in 2012. The Company incurred a $64.99 million net loss in 2011. * * * As reported by the TCR on May 15, 2013, Standard & Poor's Ratings Services Inc. said it raised its corporate credit rating on Dallas-based Builders FirstSource to 'B' from 'CCC'. "The upgrade acknowledges U.S.-based building materials manufacturer and distributor Builders FirstSource Inc.'s 'strong' liquidity based on the company's proposed recapitalization," said Standard & Poor's credit analyst James Fielding. In the May 13, 2014, edition of the TCR, Moody's Investors Service upgraded Builders FirstSource, Inc.'s ("BLDR") Corporate Family Rating to B3 from Caa1. The upgrade reflects Moody's expectation that BLDR's operating performance will continue to benefit from improved housing construction, repair and remodeling. CAPSUGEL S.A.: Moody's Affirms 'B2' Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service affirmed ratings of Capsugel S.A. Luxembourg and Capsugel Holdings US, Inc and Capsugel FinanceCo S.C.A. (together "Capsugel"), including the B2 Corporate Family Rating and the B2-PD Probability of Default Rating. Moody's also moved the Corporate Family Rating and Probability of Default rating to Capsugel S.A. Luxembourg (Capsugel Holdings S.A.'s parent) as this is the highest rated entity with debt. Moody's affirmed the Ba3 rating on the senior secured credit facilities and assigned Ba3 rating to an add-on issuance senior secured term loan to refinance the existing unsecured notes. Additionally, Capsugel will increase its revolving facility to $175 million and extend the maturity to 2019. Moody's also affirmed the Caa1 rating on the PIK Toggle Notes, including additional $415 million of Notes issuance (7% cash, 7.75% PIK) to pay a dividend to equity holders, including Kohlberg Kravis Roberts & Co. L.P. (KKR). The rating outlook is stable. "The transaction is credit negative because a second significant dividend recapitalization within a year demonstrates Capsugel's continuing shift toward more aggressive financial policies, and the resulting debt/EBITDA of more than 7.0x is not commensurate with the current B2 rating," commented John Zhao, a Vice President and Senior Analyst with Moody's. "However, we expect debt/EBITDA will decrease steadily to below 6.5x over the next 12-18 months, driven by mid-single digit EBITDA growth and debt reduction from free cash flow," added Zhao. While the transaction will increase Capsugel's leverage, interest expense will increase only marginally, resulting in only a slight reduction in free cash flow, which Moody's expects to total $60- $80 million over the next twelve months. Liquidity will also improve modestly because of the extension and upsizing of the revolver. Ratings affirmed and being moved as follows, subject to Moody's review of final documents: Capsugel SA Luxembourg Senior PIK Toggle notes - Caa1 (LGD 5) Ratings previously were assigned to Capsugel Holdings S.A. Corporate Family Rating - B2 Probability of Default Rating - B2-PD Outlook - stable Capsugel Holdings US, Inc Senior secured revolving facility - assigned at Ba3 (LGD 3) Senior secured term loan affirmed and revised to Ba3 (LGD 3) from Ba3 (LGD 2) Capsugel FinanceCo S.C.A. Add-on Senior secured term loan - assigned at Ba3 (LGD 3) Senior unsecured notes - B3 (LGD 5) -- rating will be withdrawn upon repayment Ratings Rationale The B2 Corporate Family Rating reflects Capsugel's very high financial leverage and aggressive financial policies, including significant amounts of shareholder dividends paid since the company's leveraged buyout. The rating also reflects the company's modest overall size (by revenue), and high concentration in the niche hard capsule market. Other credit risks include the company's exposure to gelatin costs, which have risen significantly. The rating is supported by the company's good track record of organic, constant currency revenue growth, and operating margin expansion. The rating is also supported by the company's leadership in supplying hard capsules to the pharmaceutical and dietary supplement industries, its track record of technological innovation, and its good diversity by geography and customer. Moody's could downgrade the ratings if leverage is expected to remain above 6.5 times over the next 12-18 months. Further, if free cash flow to debt is expected to be negative for a sustained period, or liquidity is expected to materially worsen, Moody's could downgrade the ratings. If Capsugel grows EBITDA and reduces debt such that adjusted debt to EBITDA is sustained below 5.0 times and free cash flow to debt is sustained around 8%, Moody's could upgrade the ratings. An upgrade would also require continued stability in profit margins despite fluctuations in commodity prices as well as adherence to more conservative financial policies. Capsugel, headquartered in Morristown, New Jersey, is a developer and manufacturer of capsule products and other drug delivery systems for the pharmaceutical and dietary supplement industries. The company is owned by Kohlberg Kravis Roberts & Co. L.P. Revenue for the twelve months ended March 31, 2014 were approximated $987 million. The principal methodology used in this rating was the Global Manufacturing 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. CARDTRONICS INC: Moody's Keeps B2 CFR Over Welch ATM Acquisition ---------------------------------------------------------------- Moody's Investors Service lowered Cardtronics, Inc. Speculative Grade Liquidity ("SGL") rating to SGL-2 from SGL-1, reflecting the company's weakened, albeit still good liquidity profile as a result of the planned acquisition of Welch ATM. Cardtronics' Ba2 CFR and other ratings remain unaffected by this transaction and the outlook is stable. The SGL rating was lowered as a result of the company's recent communication that it is using a significant portion of its liquidity (per management -- $120 million of pro forma balance sheet cash as of June 30, 2014 and $40 million of revolver borrowings) to fund the acquisition. On July 21, 2014, Cardtronics, Inc. announced a definitive agreement under which it will acquire Welch ATM, an operator of about 26,000 ATMs in the United States, for $160 million. The acquisition is subject to customary regulatory approvals and is expected to close by late Q3 2014. Moody's notes that the planned acquisition is credit positive as Welch deepens Cardtronics' presence within the mid-market retail and small financial institution customer segments, while being essentially leverage neutral. Pro-forma for the acquisition, Moody's estimate that Cardtronics' leverage on a Moody's adjusted debt to EBITDA basis (based on projected FY 2015 Welch EBITDA contribution) will remain around 2.9 times (as of March 31, 2014 and including the recent $250 million senior notes transaction). In addition to growing Cardtronics' global ATM portfolio to about 109,600 ATMs (92,500 US ATMs), the Welch acquisition expands Cardtronics' already significant presence with enterprise level retail customers like Walgreens (to over 5,100 ATM locations now) and adds new national level customers like Rite-Aid. The acquisition adds further scale and efficiencies to Cardtronics' existing merchant-owned and managed services ATM portfolio, and potentially increases the network locations that could use Allpoint (Cardtronics' surcharge-free ATM network), as Welch ATM network contracts convert over during the next 12 to 18 months. Furthermore, the Welch acquisition enhances Cardtronics' geographical presence, as six of Welch's top 15 states (in terms of "company owned ATMs" presence) are not currently within the top 15 states for Cardtronics. The following summarizes the rating activity: Issuer: Cardtronics, Inc. Speculative Grade Liquidity rating lowered to SGL-2 from SGL-1. Ratings Rationale Cardtronics' Ba2 Corporate Family Rating ("CFR") reflects its established market position as the world's largest retail ATM owner, its predictable operating cash flow derived from transactions-based revenues and track record of strong EBITDA growth. The rating incorporates our expectations that the company's leverage (on a Moody's adjusted debt to EBITDA basis) will approach 2.0 times and free cash flow as a percentage of debt will be in excess of 15% in the next 12 to 18 months. The rating also acknowledges the fact that Cardtronics' ATM transactions growth has outpaced the nearly stagnant levels of cash used in payment transactions in the U.S., largely due to growth in ATMs under its bank-branding arrangements and the Allpoint network (owned by Cardtronics), both of which generated higher levels of ATM transactions. The company's growing scale and investments in infrastructure provide operating leverage that should allow it to mitigate some of the impact of competitive challenges, potential declines in ATM interchange rates, or lower than expected increases in surcharge fee rates. In our opinion, the key long term risk to Cardtronics' ratings is the limited growth prospects for cash-based transactions owing to the secular shift to electronic and mobile-based payments. As a result, Moody's believe that the company will be increasingly challenged to sustain its current organic revenue growth rates in the high single digit percentages over the long term. The Ba2 rating additionally considers Cardtronics' business risks resulting from its concentrated customer revenue profile, interest rate exposure (as it relates to the fees for vault cash), highly competitive industry, and uncertainties over the intermediate to long term regarding the company's ability to maintain ATM surcharge fee and interchange fee rates (in the various jurisdictions in which it operates). Cardtronics' SGL-2 rating reflects Moody's expectations that pro forma for the Welch acquisition, the company will maintain a good liquidity profile, which will be supported by about $260 million of availability (including the additional $40 million borrowings) under the $375 million revolving credit facility and modest cash balances at close of transaction (end of Q3 2014). The company's liquidity profile is further supported by our expectation that it will generate free cash flow in excess of 15% of total debt over the next 12 to 18 months. The stable outlook reflects Moody's expectations that Cardtronics' revenues will grow in the mid to high single digit percentage range over the next 12 to 18 months (excluding acquisitions), and that total debt to EBITDA leverage will approach 2.0 times over this period through EBITDA growth and debt repayment. Given the mature growth prospects for the ATM industry in the long term, and absent meaningful improvements in Cardtronics' business risk profile, notably through increased scale, higher levels of operating cash flow and greater product diversity, a ratings upgrade is unlikely. Additional upward rating triggers include a track record of growth in free cash flow driven by revenue growth and management's commitment to maintain debt-to-EBITDA leverage below 2.0 times (Moody's adjusted), including potential increases in debt to finance acquisitions. Moody's could downgrade Cardtronics' ratings if the company experiences challenges in growing EBITDA or if EBITDA margins deteriorate as a result of an organic decline in ATM transactions or increased usage of non-cash/electronic payment methods or technologies. In addition, any material adverse impact from changes in the regulatory environment or the loss of a large customer(s) could also trigger a ratings downgrade. Furthermore, aggressive financial policies or transformative acquisitions that increase execution risk could pressure the ratings. Specifically, Moody's could lower Cardtronics' ratings if the company is unable to maintain total debt to EBITDA (Moody's adjusted) below 2.5 times and free cash flow weakens to below the mid-teens percentage of total debt for a protracted time period. The principal methodology used in this rating/analysis was the Global Business & Consumer Service Industry Rating Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Houston, TX, Cardtronics is the world's largest non-bank owner of ATMs. The company reported about $924 million in revenue for the twelve months ended March 31, 2014. CASH STORE: Applies for Administration in the United Kingdom ------------------------------------------------------------ The Cash Store Financial Services Inc. said it is no longer funding its United Kingdom operation, The Cash Store Limited. The Company also announced that it made an application for the Administration of the Cash Store Limited on July 21, 2014, in the High Court of Justice, Chancery Division, Manchester District Registry, and has requested the appointment of FTI Consulting LLP as Administrator. It is anticipated that the Court will hear the Administration Application on Aug. 1, 2014. Issues Default Status Report Cash Store provided a default status report in accordance with the alternative information guidelines in National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults. On May 16, 2014, the Company announced that it was not able to file an interim financial report and interim management's discussion and analysis for the period ended March 31, 2014, together with the related certifications of those interim filings by May 15, 2014, the deadline prescribed by securities legislation. Except as disclosed in previous press releases, there have been no material changes to the information contained in the Default Announcement or any other changes required to be disclosed by National Policy 12-203. The Company still intends to file the Continuous Disclosure Documents as soon as is commercially reasonable, or as required by the Ontario Superior Court of Justice (Commercial List) pursuant to the Cash Store Financial's Companies' Creditors Arrangement Act ("CCAA") proceedings. The Monitor has filed with the Court periodic reports which have included Cash Store Financial's cash flow projections and other financial information concerning the Company. The Company anticipates that the Monitor will continue to file reports with the Court (and post them on its Web site), updating relevant financial information concerning the Company. The Monitor's reports, Court records and other details regarding the Company's CCAA proceedings are available on the Monitor's Web site at http://cfcanada.fticonsulting.com/cashstorefinancial/. About Cash Store Financial Headquartered in Edmonton, Alberta, Cash Store Financial Services Inc. (TSX: CSF) is a lender and broker of short-term advances and provider of other financial services in Canada. Cash Store Financial operates 510 branches across Canada under the banners "Cash Store Financial" and "Instaloans". Cash Store Financial also operates 27 branches in the United Kingdom. Cash Store Financial is not affiliated with Cottonwood Financial Ltd. or the outlets Cottonwood Financial Ltd. operates in the United States under the name "Cash Store". Cash Store Financial does not do business under the name "Cash Store" in the United States and does not own or provide any consumer lending services in the United States. Cash Store Financial reported a net loss and comprehensive loss of C$35.53 million for the year ended Sept. 30, 2013, as compared with a net loss and comprehensive loss of C$43.52 million for the year ended Sept. 30, 2012. As of Sept. 30, 2013, the Company had C$164.58 million in total assets, C$165.90 million in total liabilities and a C$1.32 million shareholders' deficit. CUBIC ENERGY: Hires BDO USA as New Accountants ---------------------------------------------- Following a competitive process undertaken by the Audit Committee of the Board of Directors of Cubic Energy, Inc., the Audit Committee approved the selection of BDO USA, LLP, to serve as the Company's independent registered public accounting firm for the fiscal year ended June 30, 2014. Philip Vogel & Co. PC was notified on July 15, 2014, that it will not be retained as the Company's independent registered public accounting firm for the fiscal year ended June 30, 2014. The audit reports of Philip Vogel on the Company's consolidated financial statements as of and for the fiscal years ended June 30, 2013, and 2012 did not contain an adverse opinion or disclaimer of opinion, nor were those reports qualified or modified as to uncertainty, audit scope or accounting principles, except that as to its audit report for the fiscal year ended June 30, 2012, Philip Vogel's report included a qualification as to its substantial doubt regarding the ability of the Company to continue as a going concern. The Company said that during the two fiscal years ended June 30, 2013, and 2012 and through July 15, 2014, it had no disagreements with the accounting firm. According to the Company, during its two most recent fiscal years and the subsequent interim period prior to the engagement of BDO, the Company did not consult with BDO. Amends 98.7MM Shares Prospectus Cubic Energy amended its registration statement relating to the offering of 98,751,823 shares of its common stock issuable upon the exercise of warrants to purchase shares of the Company's common stock. The Company will not receive any of the proceeds from the resale of shares offered by the selling shareholders. The Company's common stock is traded on the OTCQB Tier of the U.S. OTC Markets under the symbol "CBNR." On July 16, 2014, the last reported sale price of the Company's common stock was $0.17 per share. A full-text copy of the Form S-1/A is available for free at http://is.gd/7mUZzH About Cubic Energy Cubic Energy, Inc., headquartered in Dallas, Texas, is an independent upstream energy company engaged in the development and production of, and exploration for, crude oil and natural gas. Its oil and gas assets and activities are concentrated in Louisiana. Cubic Energy incurred a net loss of $5.93 million for the year ended June 30, 2013, a net loss of $12.49 million for the year ended June 30, 2012, and a net loss of $10.28 million for the year ended June 30, 2011. As of March 31, 2014, the Company had $134.14 million in total assets, $141.96 million in total liabilities, $988 in redeemable preferred stock and a $7.81 million total stockholders' deficit. CENTAUR ACQUISITION: Moody's Hikes Corporate Family Rating to B2 ---------------------------------------------------------------- Moody's Investors Service upgraded Centaur Acquisition's Corporate Family Rating to B2 from B3, Probability of Default Rating to B2- PD from B3-PD, and its $175 million senior secured second lien term loan due 2020 to B3 from Caa1. Moody's also assigned Ba3 ratings to the company's new first lien senior secured credit facilities, consisting of a $25 million revolving credit facility due 2019 and $400 million term loan due 2019. The ratings outlook is stable. The upgrade reflects Centaur's improved operating margins due to cost efficiencies and improved leverage as the company has reduced its debt by $65 million over the past year. Centaur's debt/EBITDA has improved to approximately 6.0 times for the LTM period ended March 31, 2014 from about 7.0 times. The upgrade also considers the benefits of the refinancing which will result in annual interest savings of about $8 million and the favorable performance of the company's two racinos (Indiana Grand and Hoosier Park) relative to the other casinos in Indiana. Centaur used the proceeds from its new $400 million first lien term loan to refinance the $392 million outstanding under its first lien term loan due 2019. Ratings upgraded: Corporate Family Rating to B2 from B3 Probability of Default Rating to B2-PD from B3-PD $175 million second lien senior secured term loan due 2020 to B3 (LGD5) from Caa1 (LGD5) Ratings assigned: $25 million first lien senior secured revolving credit facility due 2019 at Ba3 (LGD2) $400 million first lien senior secured term loan due 2019 at Ba3 (LGD2) Ratings withdrawn: $20 million first lien senior secured revolver due 2018 at B1 (LGD2) $460 million first lien senior secured term loan due 2019 at B1 (LGD2) Ratings Rationale Centaur's B2 Corporate Family Rating ("CFR") reflects the company's good pro forma interest coverage of about 2.5 times (all metrics include Moody's standard adjustments including the capitalization of operating leases) and its good free cash flow which benefits from low capex requirements. The rating also benefits from Hoosier Park's and Indiana Grand's established market positions with favorable demographics. Both locations are somewhat insulated from new competition in Ohio given the racinos' locations just outside of Indianapolis which is approximately 100 miles away from the closest competition located in Cincinnati. Moody's expects further deleveraging to come from required term loan amortization which increased to 7.5% in the first year and 10% each year thereafter in the new credit agreement from a required 1% in the previous credit agreement. Constraining Centaur's ratings is its geographic concentration within the Indianapolis market which exposes the company to local, regional, and nationwide economic swings. Centaur is also relatively small scale in terms of revenue and like other regional gaming companies, is exposed to weak gaming demand trends. The stable rating outlook reflects Moody's expectation that Centaur will continue to generate positive free cash flow over the next two years that can be applied towards debt reduction and will maintain a good liquidity profile. The ratings could be downgraded if debt to EBITDA fails to decline below 6.0 times and/or EBIT to interest is well below 1.5 times over the next 12 to 18 months. Weakening of the company's liquidity profile could also pressure the ratings. A ratings upgrade would require sustained debt/EBITDA under 4.5 times and EBIT/interest maintained above 2.5 times assuming a stable supply and operating environment. The principal methodology used in this rating was the Global Gaming Industry published in June 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Centaur Acquisition, LLC, is the owner and operator of Hoosier Park Racing & Casino and Indiana Grand Racing & Casino, two racinos located near Indianapolis, IN. Hoosier Park is located approximately 35 miles northeast of Indianapolis and features 1,925 slots and electronic table games. Indiana Grand, which Centaur acquired in early 2013, is located 25 miles southeast of downtown Indianapolis and also features 2,005 slots and electronic table games. The two racinos generated about $447 million of gross gaming revenue for the LTM period ending June 30, 2014 per the Indiana Gaming Commission. Centaur is privately owned and does not report public financials. CENTRAL CENTER: Case Summary & 3 Unsecured Creditors ---------------------------------------------------- Debtor: Central Center Plaza, LLC 1136 South Park Suite 101 Bowling Green, KY 42103 Case No.: 14-10786 Chapter 11 Petition Date: July 24, 2014 Court: United States Bankruptcy Court Western District of Kentucky (Bowling Green) Debtor's Counsel: Scott A. Bachert, Esq. KERRICK BACHERT STIVERS, PSC 1025 State Street PO Box 9547 Bowling Green, KY 42102 Tel: 270-782-8160 Email: sbachert@kerricklaw.com Total Assets: $9 million Total Liabilities: $9.44 million The petition was signed by Mark Williams, manager. A list of the Debtor's three largest unsecured creditors is available for free at http://bankrupt.com/misc/kywb14-10786.pdf CLEAR CHANNEL: Incurs $187 Million Net Loss in Second Quarter ------------------------------------------------------------- Clear Channel Communications, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $186.63 million on $1.63 billion of revenue for the three months ended June 30, 2014, as compared with net income attributable to the Company of $7.20 million on $1.61 billion of revenue for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss attributable to the Company of $610.82 million on $2.97 billion of revenue as compared with a net loss attributable to the Company of $195.80 million on $2.96 billion of revenue for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $14.75 billion in total assets, $24.06 billion in total liabilities and a $9.31 billion total shareholders' deficit. "Our growing digital and events businesses continued their strong momentum during the quarter, further demonstrating the unique value that Clear Channel delivers to advertisers through our diverse set of media assets," chairman and chief executive officer Bob Pittman said. "At iHeartRadio, we introduced an even more personalized listener experience with the release of iHeartRadio 5.0 and grew our registered users by 50% year over year -- surpassing the milestone of 50 million registered users in record time. The first-ever iHeartRadio Music Awards, broadcast live on NBC, was a huge success -- attracting more than 65 million votes through Twitter and Facebook, with #iHeartAwards trending #1 on Twitter throughout the night and number one for Nielsen's Twitter TV ratings for the entire week. In addition, we showcased the vision and innovation of our entire company to some of the world's largest brands and agencies at the Cannes Lions International Festival of Creativity last month, while several of our clients -- including British Airways -- earned prestigious awards." A full-text copy of the Form 10-Q is available for free at: http://is.gd/QcJm7T About Clear Channel Communications San Antonio, Texas-based Clear Channel Communications, Inc., an indirect subsidiary of CC Media Holdings, Inc. (OTCBB: CCMO), is one of the leading global media and entertainment companies specializing in radio, digital, outdoor, mobile, live events, and on-demand entertainment and information services for local communities and providing premier opportunities for advertisers. CC Media Holdings Inc. -- http://www.ccmediaholdings.com/-- is a global media and entertainment company. Its businesses include radio and outdoor displays. Clear Channel reported a net loss attributable to the Company of $606.88 million in 2013, a net loss attributable to the Company of $424.47 million in 2012 and a net loss attributable to the Company of $302.09 million in 2011. Bankruptcy Warning "If our and our subsidiaries' cash flows from operations, refinancing sources and other liquidity-generating transactions are insufficient to fund our respective debt service obligations, we may be forced to reduce or delay capital expenditures, sell material assets or operations, or seek additional capital. We may not be able to take any of these actions, and these actions may not be successful or permit us or our subsidiaries to meet the scheduled debt service obligations. Furthermore, these actions may not be permitted under the terms of existing or future debt agreements." "The ability to refinance the debt will depend on the condition of the capital markets and our financial condition at such time. Any refinancing of the debt could be at higher interest rates and increase debt service obligations and may require us and our subsidiaries to comply with more onerous covenants, which could further restrict our business operations. The terms of existing or future debt instruments may restrict us from adopting some of these alternatives. These alternative measures may not be successful and may not permit us or our subsidiaries to meet scheduled debt service obligations. If we or our subsidiaries cannot make scheduled payments on indebtedness, we or our subsidiaries, as applicable, will be in default under one or more of the debt agreements and, as a result we could be forced into bankruptcy or liquidation," the Company said in its annual report for the year ended Dec. 31, 2013. * * * In May 2013, Moody's Investors Service said that Clear Channel's upsize of the term loan D to $4 billion from $1.5 billion will not impact the Caa1 facility rating assigned. Clear Channel's Corporate Family Rating is unchanged at Caa2. The outlook remains stable. In May, Standard & Poor's Ratings Services also announced that its issue-level rating on San Antonio, Texas-based Clear Channel's senior secured term loan remains unchanged at 'CCC+' following the company's upsize of the loan to $4 billion from $1.5 billion. The rating on parent company CC Media Holdings remains at 'CCC+' with a negative outlook, which reflects the risks surrounding the long- term viability of the company's capital structure. CLEARWATER PAPER: Moody's Rates New $300MM Unsecured Notes 'Ba2' ---------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to Clearwater Paper Corporation's proposed $300 million senior unsecured note offering maturing 2024. The company's Ba2 corporate family rating, Ba2-PD probability of default rating and other ratings remain unchanged. Proceeds of the debt offering, plus cash and drawings under the company's revolving credit facility, will be used to repay the company's $375 million 7.125% senior unsecured notes which mature in 2018. The outlook remains stable. Assignments: Issuer: Clearwater Paper Corporation Senior Unsecured Regular Bond/Debenture, Assigned Ba2 Senior Unsecured Regular Bond/Debenture, Assigned a range of LGD4 "The refinancing is essentially leverage neutral, but will improve the company's interest coverage with the anticipated lower coupon and will modestly improve the company's debt maturity profile," noted Ed Sustar, Moody's Vice President. "While liquidity will weaken as a result of the use of cash and draw on the existing revolver, Moody's view is that liquidity remains good and will improve as the company continues to generate positive free cash flow." Ratings Rationale The proposed notes will rank equally with Clearwater's existing $275 million senior unsecured notes due 2023. The company's Ba2 senior unsecured rating incorporates the noteholders' position behind the company's $125 million asset-backed revolver (unrated). All the ratings are subject to the conclusion of the proposed transaction and Moody's review of final documentation. Clearwater's Ba2 corporate family rating reflects the company's significant position as one of the leading North American producers of private label tissue products and bleached paperboard. The rating incorporates the relative demand stability of the high-end tissue and paper packaging markets and expectations of adjusted leverage of about 3x. The rating also reflects the company's vulnerability to larger and financially stronger branded tissue producers in the highly competitive consumer products industry. Clearwater has good liquidity (SGL-2) supported by approximately $82 million in cash and short term investments as of June 2014, almost full availability under a $125 million revolving credit facility that matures in 2016 and our expectations of approximately $50 million of cash generation over the next four quarters. The company does not face any significant near term debt maturities. A minimum fixed charge covenant ratio is the only financial test requirement under the credit facility and is triggered when availability under the facility falls below 12.5% of facility size. Moody's expect Clearwater will remain in compliance over the near term. The company's fixed assets are mostly unencumbered. The stable rating outlook reflects our expectation that Clearwater's end markets will remain stable and that the company's normalized operating and financial performance will be in line with its rating. An upgrade may be considered if normalized adjusted Debt to EBITDA is expected to be sustained below 3x and (RCF-CapEx)/TD exceeds 10%. Should our expectation of leverage increase above 4x, or if liquidity arrangements deteriorate significantly, the rating may be susceptible to downwards pressure. The principal methodology used in this rating was the Global Paper and Forest Products Industry published in October 2013. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Spokane Washington, Clearwater is a leading North American producer of private label tissue products and bleached paperboard. CYCLONE POWER: Inks Separation Agreement with Unit -------------------------------------------------- Cyclone Power Technologies, Inc., signed a separation agreement with its 74% owned subsidiary, WHE Generation, Corp. The Agreement provides the foundation by which WHE GEN plans to raise approximately $2.35 million in new funding, and structure its business moving forward. That funding is anticipated to occur in two rounds - the first in the amount of $350,000 pursuant to several 12-month, 6% interest rate Promissory Notes which are convertible into WHE GEN common stock at a price of $.12 per share. The second round will occur subsequent to the closing of the Notes, and be in the aggregate amount of up to $2 million of common stock of WHE GEN at a forecasted price of $.27 per share. Upon the closing of at least $1 million in the second round, the Notes will automatically convert. The two financings must be completed by Sept. 30, 2014, or else the Company may terminate the Agreement. Upon the successful closing of WHE GEN's contemplated financings, Cyclone is expected to receive $175,000 in license and consulting fees and retire its senior secured debt, including termination all of security interests and liens on its assets. Under the Agreement Cyclone also transferred to WHE GEN other accounts payable of approximately $200,000 and $300,000 in contract liabilities. Cyclone may raise $500,000 in additional capital from the sale of a portion of its WHE GEN equity holdings to further reduce existing debt and provide operating capital. It will retain a minority equity interest in WHE GEN estimated between 12% and 23% depending on the size of the several capital raises, which remaining amount it has agreed to distribute to Cyclone shareholders when and if WHE GEN files a registration statement with the Securities and Exchange Commission, and subject to applicable law. Cyclone and WHE GEN also amended its 2010 License Agreement to provide Cyclone with on-going 5% royalties from WHE GEN's sale of engines utilizing the licensed technology. This License is 20 years with two 10-year extensions. It is worldwide in territory and exclusive for the specific applications of stationary waste heat recovery (WHR) and waste-to-power (WtP). In connection with these transactions, Christopher Nelson resigned as President of Cyclone to assume the position of chief executive officer of WHE GEN. Cyclone's Board appointed Frankie Fruge as his replacement. Joel Mayersohn has also resigned as a director of the Company to become a director of WHE GEN. Cyclone's Board received a Fairness Opinion and Valuation Report from a certified valuation expert in connection with the Separation Agreement and funding structures. In the opinion of the expert, the transactions were deemed to be fair to Cyclone's shareholders from a financial perspective. The transactions were approved by the unanimous vote of the Board of the Company, including a majority whom are considered independent under SEC rules. Those securities which may ultimately be offered will not be or have not been registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration or an applicable exemption from registration. About Cyclone Power Pompano Beach, Fla.-based Cyclone Power Technologies, Inc. (Pink Sheets: CYPW) is a clean-tech engineering company, whose business is to develop, commercialize and license its patented Rankine cycle engine technology for applications ranging from renewable power generation to transportation. The Company is the successor entity to the business of Cyclone Technologies LLLP, a limited liability limited partnership formed in Florida in June 2004. Cyclone Technologies LLLP was the original developer and intellectual property holder of the Cyclone engine technology. Cyclone Power reported a net loss of $3.79 million on $715,382 of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $3 million on $1.13 million of revenues for the year ended Dec. 31, 2012. The Company's balance sheet at March 31, 2014, showed $1.37 million in total assets, $3.62 million in total liabilities and a $2.25 million total stockholders' deficit. Mallah Furman, in Fort Lauderdale, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's dependence on outside financing, lack of sufficient working capital, and recurring losses raises substantial doubt about its ability to continue as a going concern. DETROIT, MI: Judge Trims Disputes for August Bankruptcy Trial ------------------------------------------------------------- Steven Church, writing for Bloomberg News, reported that the federal judge overseeing Detroit's record $18 billion bankruptcy is trying to reduce the number of legal disputes he must resolve before the start of trial on the city's debt-adjustment plan next month. According to the Bloomberg report, U.S. Bankruptcy Judge Steven Rhodes has begun two days of hearings on about a half-dozen technical matters raised by opponents of the bankruptcy, including whether the counties surrounding Detroit have a right to challenge the city's plan. By culling the issues, Judge Rhodes is seeking to focus the trial on disputes over the basic facts underlying the city's proposal, the Bloomberg report related. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported on July 23 that Martha Kopacz, the bankruptcy court's chosen expert on the feasibility of Detroit's debt-adjustment plan, spotted several weaknesses in city government that she said need to be improved to ensure there's no second default. Ms. Kopacz, a senior managing partner at Phoenix Management Services LLC, has filed a report with the court concluding that Detroit "will be able to sustainably provide basic municipal services? under its plan, Mr. Rochelle related. She also said the city will be able "to meet the obligations contemplated in the plan without the significant probability of default,? Mr. Rochelle added. Ms. Kopacz will testify at the plan-approval trial set to start Aug. 14, Mr. Rochelle said. About City of Detroit, Michigan The City of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The City's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. The Hon. Steven Rhodes oversees the bankruptcy case. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. A nine-member official committee of retired workers was appointed in the case. The Retirees' Committee is represented by Dentons US LLP. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. DETROIT, MI: Institute of Arts Secures $26.8MM for Bargain ---------------------------------------------------------- Reuters reported that Detroit Institute of Arts said it has secured another $26.8 million in pledged donations to cover its portion of the "grand bargain" intended to help Detroit emerge from bankruptcy while sparing a sale of the museum's art works. According to Reuters, the biggest pledge, of $10 million, came from Roger S. Penske and his transportation services company Penske Corp, followed by $5 million from DTE Energy, and $5 million from Quicken Loans and the Rock Ventures Family of Companies, the Detroit companies founded by Dan Gilbert. Blue Cross Blue Shield of Michigan pledged $2.5 million, while Michigan retail chain Meijer, Comerica Bank and JPMorgan Chase & Co each promised $1 million, Reuters related. Consumers Energy will give $800,000 and the Delta Air Lines Foundation $500,000, Reuters further related, citing the art museum. 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. DOMINIC A. GORNIAK: FirstMerit Bank Has Green Light to Foreclose ---------------------------------------------------------------- FIRSTMERIT BANK, N.A., a national banking association, Plaintiff, v. CHICAGO TITLE LAND TRUST COMPANY, et al., Defendant(s). United States District Court, N.D. Illinois, Eastern Division, Case No. 1:13-CV-08570 (N.D. Ill.), seeks to foreclose a mortgage and a judgment lien on property located at 38 West End Drive, Gilberts, Illinois owned by Chicago Title Land Trust Company, as trustee under agreement dated March 12, 1999 and known as Trust No. 1106930, as Borrower. The Mortgage secures debt that is due and owing pursuant to a Loan to the Borrower. The Borrower is currently in default under the Loan, and has failed to pay all obligations due and owing from Borrower to FirstMerit with respect to the Loan. Each of Dominic A. Gorniak and Barbara J. Gorniak, as Guarantors, and Gilberts Industrial Condominium Association, an Illinois not-for-profit corporation, may also hold or claim interests in the Property. FirstMerit Bank, N.A., a national banking association, is the successor in interest to the Federal Deposit Insurance Corporation, as receiver for Midwest Bank and Trust Company, successor in interest to Royal American Bank. In a July 22, 2014 decision available at http://is.gd/j7isKwfrom Leagle.com, District Judge John Z. Lee: 1. finds that the Gorniaks have no equity in the property and the property is not necessary for an effective reorganization. 2. grants FirstMerit's Motion for Entry of Default Judgment and Judgment of Foreclosure and Sale with respect to: (a) the property located at 38 W. End, Gilberts, Illinois. FirstMerit may pursue all remedies available in law or equity to enforce its liens, security interests, and other rights in or against the Gilberts Property, including, but not limited to, the right to foreclose the interests of the Debtors and the Chicago Title Land Trust Company as trustee under the agreement dated March 12, 1999 and known as Trust No. 1106930, and the right to sell or otherwise dispose of the Gilberts Property pursuant to applicable state law. (b) the properties located at 1000-1001 Apache Court, Fort Atkinson, Wisconsin, 1002 Apache Court, Fort Atkinson, Wisconsin, 1005 Apache Court, Fort Atkinson, Wisconsin, 1120 Seminole Drive, Fort Atkinson, Wisconsin, and all property owned by the Debtors and located in Chippewa County, Wisconsin. FirstMerit may pursue all remedies available in law or equity to enforce its liens, security interests, and other rights in or against these properties, including, but not limited to, the right to foreclose the interests of the Debtors and the right to sell or otherwise dispose of the properties pursuant to applicable state law. (c) the Game Farm Animals and the Game Farm Equipment located at the Chippewa County Property. FirstMerit may pursue all remedies available in law or equity to enforce its liens, security interests, and other rights in or against the Game Farm Animals and Game Farm Equipment, including, but not limited to, the right to foreclose the interests of the Debtors and the right to sell or otherwise dispose of the Game Farm Animals and Game Farm Equipment pursuant to applicable state law. 3. permits FirstMerit to immediately proceed with its remedies against the all of the properties, the Game Farm Animals, and the Game Farm Equipment, without further delay. FirstMerit Bank, N.A., a national banking association, is represented by: Gus Anthony Paloian, Esq. James B. Sowka, Esq. Bret M Harper, Esq. Jason Jon DeJonker, Esq. Seyfarth Shaw LLP 131 South Dearborn Street, Suite 2400 Chicago, IL 60603-5577 Tel: (312) 460-5936 E-mail: gpaloian@seyfarth.com jsowka@seyfarth.com bharper@seyfarth.com jdejonker@seyfarth.com Dominic A. Gorniak and Barbara J. Gorniak filed a joint Chapter 11 petition (Bankr. W.D. Wis. Case No. 13-15827) on December 6, 2013. DUTCH GOLD: Inks License Agreement with Abba Medix -------------------------------------------------- Dutch Gold Resources, Inc., had entered into an agreement with Abba Medix Corporation, granting Abba Medix a license to sell and distribute Company's products in Canada and other countries. The agreement is available for free at http://is.gd/XJ0azy About Dutch Gold Based in Atlanta, Ga., Dutch Gold Resources, Inc. (OTC: DGRI) -- http://www.dutchgoldresources.com/-- is a junior gold miner focused on developing its existing mining properties in North America and acquiring and developing new mines that can enter into production in 12 to 24 months. After auditing the 2011 results, Hancock Askew & Co., LLP, in Norcross, Georgia, noted that the Company has limited liquidity and has incurred recurring losses from operations and other conditions exist which raise substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of $4.58 million on $0 of sales in 2011, compared with a net loss of $3.69 million on $0 of revenue in 2010. The Company's balance sheet at Sept. 30, 2012, showed $2.65 million in total assets, $7.17 million in total liabilities and a $2.23 million total stockholders' deficit. EASTSIDE COMMERCIAL: Community & Southern Assumes All Deposits -------------------------------------------------------------- Eastside Commercial Bank, Conyers, Georgia, was closed July 18 by the Georgia Department of Banking & Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Community & Southern Bank, Atlanta, Georgia, to assume all of the deposits of Eastside Commercial Bank. The two branches of Eastside Commercial Bank reopened as branches of Community & Southern Bank during their normal business hours. Depositors of Eastside Commercial Bank will automatically become depositors of Community & Southern Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Eastside Commercial Bank should continue to use their current branch until they receive notice from Community & Southern Bank that systems conversions have been completed to allow full-service banking at all branches of Community & Southern Bank. Depositors of Eastside Commercial Bank can continue to access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual. As of March 31, 2014, Eastside Commercial Bank had approximately $169.0 million in total assets and $161.6 million in total deposits. In addition to assuming all of the deposits of Eastside Commercial Bank, Community & Southern Bank agreed to purchase approximately $104.7 million of the failed bank's assets. In a separate transaction, the FDIC will enter into an agreement with State Bank and Trust Company, Macon, Georgia, to purchase $42.6 million of Eastside Commercial Bank's loans. The FDIC will retain the remaining assets for later disposition. Customers with questions about the transaction should call the FDIC toll-free at 1-800-894-5183. The phone number will be operational this evening until 9:00 p.m.; Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; on Monday from 8:00 a.m. to 8:00 p.m., EDT; and thereafter from 9:00 a.m. to 5:00 p.m., EDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/eastside.html. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $33.9 million. Compared to other alternatives, Community & Southern Bank's acquisition was the least costly resolution for the FDIC's DIF. Eastside Commercial Bank is the 13th FDIC-insured institution to fail in the nation this year, and the first in Georgia. The last FDIC-insured institution closed in the state was Sunrise Bank, Valdosta, on May 10, 2013. ELBIT IMAGING: Closes Settlement Agreement with Bank of Leumi ------------------------------------------------------------- Elbit Imaging Ltd. announced that following the Court's approval, the transactions contemplated by the settlement between Company and Bank Leumi Le Israel B.M. have been consummated. Under the settlement, Bank Leumi received ownership of all marketable securities held in the Company's accounts at Bank Leumi having a fair value of approximately NIS 8.7 million (based on their quoted market price). The Company's net debt (after offset of the aforementioned marketable securities) to Bank Leumi in the amount of approximately NIS 38 million was cancelled in exchange for 7,404,119 ordinary shares, NIS 6,507,666 aggregate principal amount of Series G notes and NIS 3,166,678 aggregate principal amount of Series H notes of the Company. The balance of 1,686,003 ordinary shares, NIS 1,481,870 aggregate principal amount of Series G notes and NIS 721,089 aggregate principal amount of Series H notes of the Company retained in trust will be cancelled. As described in the Previous Announcement, the Settlement also includes a mutual waiver of claims by the Company and Bank Leumi. About Elbit Imaging Ltd. Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) hold investments in real estate and medical companies. The Company, through its subsidiaries, also develops shopping and entertainment centers in Central Europe and invests in and manages hotels. Since February 2013, Elbit has intensively endeavored to come to an arrangement with its creditors. Elbit has said it has been hanging by a thread for more than five months. It has encountered cash flow difficulties and this burdens its day to day activities, and it certainly cannot make the necessary investments to improve its assets. In light of the arrangement proceedings, and according to the demands of most of the bondholders, as well as an agreement that was signed on March 19, 2013, between Elbit and the Trustees of six out of eight series of bonds, Elbit is prohibited, inter alia, from paying off its debts to the financial creditors - - and as a result a petition to liquidate Elbit was filed, and Bank Hapoalim has declared its debts immediately payable, threatening to realize pledges that were given to the Bank on material assets of the Company -- and Elbit undertook not to sell material assets of the Company and not to perform any transaction that is not during its ordinary course of business without giving an advance notice to the trustees. Accountant Rony Elroy has been appointed as expert for examining the debt arrangement in the Company. In July 2013, Elbit Imaging's controlling shareholders, Europe- Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company that the Tel Aviv District Court has appointed Adv. Giroa Erdinast as a receiver with regards to the ordinary shares of the Company held by Europe Israel securing Europe Israel's obligations under its loan agreement with Bank Hapoalim B.M. The judgment stated that the Receiver is not authorized to sell the Company's shares at this stage. Following a request of Europe-Israel, the Court also delayed any action to be taken with regards to the sale of those shares for a period of 60 days. Europe Israel and Mr. Zisser have also notified the Company that they utterly reject the Bank's claims and intend to appeal the Court's ruling. Elbit Imaging reported a loss of NIS1.56 billion on NIS360.59 million of total revenues for the year ended Dec. 31, 2013, as compared with a loss of NIS483.98 million on NIS418.48 million of total revenues in 2012. The Company's balance sheet at Dec. 31, 2013, showed NIS4.56 billion in total assets, NIS4.97 billion in total liabilities and a NIS408.63 million shareholders' deficit. Brightman Almagor Zohar & Co., a member firm of Deloitte Touche Tohmatsu, in Tel-Aviv, Israel, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. ENERGY FUTURE: Wants Plan Filing Date Extended Until 2015 --------------------------------------------------------- Energy Future Holdings Corp., et al., ask the U.S. Bankruptcy Court for the District of Delaware to extend until Feb. 23, 2015, the period by which they have exclusive right to file a Chapter 11 plan and until April 25, 2015, the period by which they have exclusive right to solicit votes on that plan. The Debtors said in court papers that they would need the additional time to engage their stakeholders in discussions regarding the process for evaluating alternative restructuring proposals that will facilitate confirmation of a consensual, value-maximizing plan of reorganization. The Debtors need to continue their diligent efforts to reevaluate the Energy Future Intermediate Holdings Company, LLC, Second Lien DIP Facility and explore strategic alternatives with other interested parties. According to Bill Rochelle, the bankruptcy columnist for Bloomberg News, U.S. Bankruptcy Judge Christopher S. Sontchi has been putting the brakes on a proposed $1.9 billion financing that's a lynchpin to effectuating the entire reorganization. Lenders who see themselves as a disfavored creditors launched a counterattack by enlisting NextEra Energy Inc. as part of a group to provide alternative financing and another reorganization structure for the Oncor Electric Delivery Company LLC regulated electric distribution business, Mr. Rochelle said. A hearing on the extension request is scheduled for Aug. 13, 2014, at 9:30 a.m. (ET). Objections are due Aug. 6. On the same hearing, Judge Sontchi will also decide whether to extend the time for the Debtors to assume or reject unexpired leases of non-residential real property through and including Nov. 25. The Debtors said they have not had the opportunity to fully assess their re-negotiation, assumption, and rejection options with respect to their entire pool of unexpired leases. Mark D. Collins, Esq., Daniel J. DeFranceschi, Esq., Jason M. Madron, Esq., and William A. Romanowicz, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware; Richard M. Cieri, Esq., Edward O. Sassower, P.C., Esq., Stephen E. Hessler, Esq., and Brian E. Schartz, Esq., at Kirkland & Ellis LLP, in New York; and James H.M. Sprayregen, P.C., Esq., Chad J. Husnick, Esq., and Steven N. Serajeddini, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois. 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. ENERGY FUTURE: To Pursue Alternatives; Cancels Plan Support Deal ---------------------------------------------------------------- In anticipation of their bankruptcy filing, Energy Future Holdings Corp. and the substantial majority of its direct and indirect subsidiaries, including Energy Future Intermediate Holding Company LLC, Energy Future Competitive Holdings Company LLC and Texas Competitive Electric Holdings Company LLC, on April 29, 2014, entered into a Restructuring Support and Lock-Up Agreement with various stakeholders to effect an agreed upon restructuring of the Reorganizing Entities through a pre-arranged Chapter 11 plan of reorganization. On July 24, 2014, pursuant to Section 8.06(c) of the RSA, each of EFH Corp., EFIH, EFCH, TCEH, EFIH Finance, Inc. and TCEH Finance Inc. provided a notice of termination of the RSA in accordance with its terms to the Consenting Parties. The Termination will be effective five business following delivery of the notice, July 31. The Reorganizing Entities believe the RSA has provided significant benefit to the Reorganizing Entities, including, without limitation: (a) enabling the Reorganizing Entities to obtain the support of holders of the TCEH first lien secured claims for the TCEH debtor-in-possession financing facility and the use of cash collateral for 18 months without any milestones, and (b) providing a framework for the restructuring transactions involving EFH Corp. and EFIH described in the RSA, which prompted competing proposals (including, among others, an alternative proposal from NextEra Energy, Inc.). In cooperation with their various stakeholders, the Reorganizing Entities have focused (and will continue to focus) on formulating and implementing an effective and efficient plan of reorganization for each of the Reorganizing Entities under Chapter 11 of the Bankruptcy Code that maximizes enterprise value. Each of the Reorganizing Entities remains committed to the tax-free spin of TCEH and its subsidiaries -- TCEH Debtors -- described in the RSA. Moreover, the TCEH first lien creditors who were party to the RSA have advised the Reorganizing Entities that, notwithstanding the RSA Termination, they intend to continue to work cooperatively with the Reorganizing Entities and other parties in interest to pursue transactions that can be achieved expeditiously, including a possible tax-free spin of the TCEH Debtors, which will maximize the value of the TCEH Debtors' estates and resolve the Chapter 11 Cases. The Reorganizing Entities are encouraged by the interest in EFIH and it subsidiaries, including Oncor Electric Delivery Company LLC. The Reorganizing Entities intend to conduct a court supervised bid process with respect to the restructuring of EFH and EFIH to maximize their respective enterprise values for all stakeholders. In addition, EFH and EFIH intend to continue to negotiate with each party that has submitted bids to date with respect to the reorganization of EFH and EFIH. Peg Brickley, writing for Daily Bankruptcy Review, reported that NextEra is pitching the board of Energy Future Intermediate Holding Co. on a takeover plan that it claims would mean higher recoveries for creditors of the Dallas power company, which is tackling some $42 billion in debt in Chapter 11 bankruptcy. The proposal was unveiled in court documents, according to the report. Ms. Brickley also reported that Edward Sassower, Esq., lawyer for EFH, said the company is entertaining takeover overtures from NextEra and others that have expressed an interest in a new deal for the company. According to the report, speaking at a bankruptcy court hearing, Mr. Sassower said EFH considers NextEra's proposal "very promising," and it gives Energy Future reason to pause and "take stock of the situation" before forging ahead with its restructuring strategy. EFIH 2nd Lien Notes Settlement Cancelled On May 9, 2014, EFIH and EFIH Finance Inc. commenced an offer to purchase the Issuer's 11% Senior Secured Second Lien Notes due 2021 and 11.750% Senior Secured Second Lien Notes due 2022 for cash as a voluntary settlement with respect to the Issuer's obligations under the EFIH Second Lien Notes. The Offer expires at 5:00 p.m. Eastern Standard Time on July 25, 2014. Due to the RSA Termination and the transactions contemplated thereunder, the Issuer will not be able to satisfy certain conditions to the Offer as of the Expiration Time or thereafter that are necessary for the consummation of the EFIH Second Lien Settlement, and the Issuer is unable to waive such conditions. As a result, the EFIH Second Lien Settlement will not be consummated after the Expiration Time, and none of the EFIH Second Lien Notes that have been tendered in the EFIH Second Lien Settlement will be accepted for purchase and no consideration will be paid or become payable to holders of EFIH Second Lien Notes who have tendered their EFIH Second Lien Notes in the EFIH Second Lien Settlement. All EFIH Second Lien Notes previously tendered and not withdrawn will be returned or credited back to their respective holders promptly after the Expiration Time. The Issuer reserves the right to commence a new tender offer, or to otherwise redeem or repurchase some or all of the outstanding EFIH Second Lien Notes, at a later date but is under no obligation to do so. 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. ENERGY FUTURE: Separate 401(k) Plan for Oncor Workers Approved -------------------------------------------------------------- Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware approved a separate 401(k) Plan for Oncor Electric Delivery Holdings Co.'s employees who participate in Energy Future Holdings Corp. As previously reported, the new plan would help reduce administrative burden on the part of Energy Future. About 4,000 current and former employees of Oncor participate in Energy Future's 401(k) plan. Approximately $626 million or 40% of the assets in the plan are attributable to these employees. 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. ENERGY FUTURE: Indenture Trustee Wants EFC Creditors' Committee --------------------------------------------------------------- American Stock Transfer & Trust Company, LLC, as successor trustee to The Bank of New York Mellon Trust Company, N.A., under certain indentures ask the U.S. Bankruptcy Court for the District of Delaware to require the appointment of an official committee of unsecured creditors for Energy Future Holdings Corp. In its request, American Stock says "not only is the appointment of an EFH Committee mandatory, but the recent changes to the circumstances in this case make it advisable for the following reasons: (i) These cases are among the largest and most complicated ever filed; (ii) The Restructuring Support Agreement has been terminated and/or is subject to termination, and thus the path forward for these cases, especially to unsecured creditors of EFH, is uncertain; and (iii) As evidenced by the litigation to date, the path to a resolution of these cases may be highly contentious and no fiduciary, with sufficient resources and free of potential conflicts imposed by other interests, has been appointed pursuant to the provisions of the Bankruptcy Code to represent the interests of the unsecured creditors of EFH." A hearing on the request is scheduled for Aug. 13, 2014, at 9:30 a.m. Objections are due Aug. 6. The Indenture Trustee is represented by: Christopher P. Simon, Esq. CROSS&SIMON, LLC 913 North Market Street, 11th Floor Wilmington, DE 19801 Tel: (302) 777-4200 Fax: (302) 777-4224 E-mail: csimon@crosslaw.com -- and -- Amanda D. Darwin, Esq. Richard C. Pedone, Esq. Erik Schneider, Esq. NIXON PEABODY LLP 100 Summer Street Boston, MA 02110 Tel: (617) 345-1300 Fax: (855) 739-9081 E-mail: adarwin@nixonpeabody.com rpedone@nixonpeabody.com eschneider@nixonpeabody.com 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. ESSAR STEEL: Donlin Recano to Provide Noticing & Website Services ----------------------------------------------------------------- Donlin, Recano & Company, Inc., an affiliate of American Stock Transfer & Trust Company, LLC, on July 21 disclosed that it is providing noticing, website and related services in the Essar Steel Algoma Inc., et al. Chapter 15 cases. The Canadian steelmaker filed Chapter 15 petitions in the United States Bankruptcy Court for the District of Delaware. The company listed over $1 billion in assets. Kirkland & Ellis LLP is counsel for the debtor and Richards, Layton & Finger, P.A. is local counsel in Wilmington, Delaware. Case information can be found by visiting DRC's website at: http://www.donlinrecano.com/Clients/essar/Index 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. 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 Essar Steel Essar Steel Algoma Inc. is Canada's second-largest integrated steel producer. FIRST DATA: Inks Repricing Amendment to 2007 Credit Agreement ------------------------------------------------------------- First Data Corporation, on July 18, 2014, entered into a 2014 July Repricing Amendment to its Credit Agreement, dated as of Sept. 24, 2007, as amended several times among the Company, the lenders and Credit Suisse AG, Cayman Islands Branch, as administrative agent. Pursuant to the Amendment, the Company incurred an aggregate principal amount of approximately $4,600 million in new U.S. dollar denominated term loans and approximately EUR311 million in new euro denominated term loans maturing on March 24, 2018. The interest rate applicable to the 2018 New Term Loans is a rate equal to, at the Company's option, either (a) LIBOR for deposits in the applicable currency plus 350 basis points or (b) solely with respect to term loans denominated in U.S. dollars, a base rate plus 250 basis points. The Company used a portion of the proceeds from the incurrence of the 2018 New Term Loans to repay its outstanding term loan borrowings maturing on March 24, 2018, with approximately $350 million in remaining aggregate principal amount of 2018 New Term Loans to be used for general corporate purposes. Pursuant to the Amendment, the Company also incurred an aggregate principal amount of approximately $1,008 million in new U.S. dollar denominated term loans maturing on Sept. 24, 2018. The interest rate applicable to the 2018B Second New Term Loans is a rate equal to, at the Company's option, either (a) LIBOR for deposits in U.S. dollars plus 350 basis points or (b) a base rate plus 250 basis points. The Company used the proceeds from the incurrence of the 2018B Second New Term Loans to repay an equal amount of its outstanding U.S. dollar denominated term loan borrowings maturing on Sept. 24, 2018. Pursuant to the Amendment, the Company also modified certain other provisions of the Credit Agreement to provide for greater operational flexibility. A full-text copy of the 2014 July Repricing Amendment is available for free at http://is.gd/CHWJKK About First Data Based in Atlanta, Georgia, First Data Corporation provides commerce and payment solutions for financial institutions, merchants, and other organizations worldwide. First Data reported a net loss attributable to the Company of $869.1 million in 2013, a net loss attributable to the Company of $700.9 million in 2012 and a net loss attributable to the Company of $516.1 million in 2011. * * * The Company carries a 'B3' corporate family rating, with a stable outlook, from Moody's Investors Service, a 'B' corporate credit rating, with stable outlook, from Standard & Poor's, and a 'B' long-term issuer default rating from Fitch Ratings. FLORIDA GAMING: Liquidation Plan Confirmed by Judge --------------------------------------------------- Law360 reported that a bankruptcy judge confirmed the liquidation plan for Casino Miami Jai-Alai's former owner, Florida Gaming Centers Inc., that is centered on its $155 million sale to its lead creditor, according to counsel for the unsecured creditors committee. According to Law360, no objections were filed against the plan, which wrapped up about three months after U.S. Bankruptcy Judge Robert A. Mark approved the sale on April 7 to Fronton Holdings LLC, an entity formed by lead creditor ABC Funding LLC, which came out with the winning bid in a bankruptcy auction for the assets of FGCI. BankruptcyData reported that the documents filed with the Court stated: "On and after the Effective Date, the Creditor Trustee shall be authorized, in his sole and absolute discretion, to take all actions reasonably necessary to dissolve the Debtors and their subsidiaries under applicable laws, including the laws of the jurisdictions in which they may be organized or registered, and to pay all reasonable costs and expenses in connection with such dissolutions, including the costs of preparing or Filing any necessary paperwork or documentation. Whether or not dissolved, the Debtors shall have no authorization to implement the provisions of this Plan from and after the Effective Date except as specifically provided otherwise in the Plan. The Debtors have selected Soneet R. Kapila to act as creditor trustee commencing on the Plan's effective date." 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. FOOT LOCKER: Moody's Raises Corporate Family Rating to Ba1 ---------------------------------------------------------- Moody's Investors Service upgraded Foot Locker, Inc.'s Corporate Family Rating to Ba1 from Ba2, Probability of Default Rating to Ba1-PD from Ba2-PD, and the rating on the senior unsecured debentures to Ba2 from Ba3. The speculative-grade liquidity rating was affirmed at SGL-1. The ratings outlook is stable. "Foot Locker has delivered consistent growth in spite of weak mall traffic and challenges in the teen apparel space," said Moody's analyst Raya Sokolyanska. "We believe the company's execution capabilities, near-term support to same store sales from on-going remodeling initiatives, and a strong athletic footwear innovation cycle will continue to support earnings going forward." The upgrade reflects the meaningful improvement in Foot Locker's operations as a result of good execution on its strategic initiatives. Over the past several years, the company has created a more differentiated and targeted consumer offering, closed and remodeled stores, and enhanced its ecommerce platform and inventory management. The resulting earnings growth has brought Foot Locker's credit metrics, including lease-adjusted leverage of 3.8 times as of May 2014, in-line with levels appropriate for the Ba1 rating category. The upgrade also incorporates Moody's expectations that the company will maintain leverage at or below current levels and a low funded debt balance. Rating Actions: Issuer: Foot Locker, Inc. Corporate Family Rating, upgraded to Ba1 from Ba2 Probability of Default Rating, upgraded to Ba1-PD from Ba2-PD $200 million ($118 million outstanding) senior unsecured debentures due 2022, upgraded to Ba2 (LGD4) from Ba3 (LGD4) Speculative-Grade Liquidity Rating, affirmed at SGL-1 Outlook, revised from Positive to Stable Ratings Rationale Foot Locker's Ba1 Corporate Family rating reflects its moderate leverage with debt/EBITDA at 3.8 times as of May 4, 2014, low level of funded debt, a well-recognized brand name, meaningful scale, geographic diversification, and very good liquidity. The rating is constrained by the company's high vendor concentration, which elevates the impact of any adverse changes in vendor relationships, and narrow focus on the fashion-sensitive premium athletic footwear and apparel market. The rating also considers Foot Locker's current financial policy, which favors share repurchases and dividends, as well as its high operating leases that will make it difficult for the company to materially deleverage further. The stable outlook reflects Moody's expectations that financial policies will continue to be shareholder- friendly, including use of free cash flow for dividends and share repurchases, but that the company will not incur material additional debt such that lease-adjusted leverage will remain below 4 times. An upgrade is unlikely until Foot Locker reduces its reliance on NIKE (whose products currently account for over two thirds of its revenue), articulates clear financial targets that would be consistent with a higher rating, and expands its apparel, women's and kids' businesses. In addition, an upgrade would require the company to achieve and maintain lease-adjusted debt/EBITDA below 3.25 times. The ratings could be downgraded if Foot Locker adopts a more aggressive financial policy, including debt-financed share repurchases or acquisitions, or if liquidity worsens. An adverse change in the company's operating environment could also pressure the ratings, including a deterioration in its relationship with NIKE, or a lasting shift in consumer preference away from premium basketball shoes, which represent an important and high-margin part of the business. Quantitatively, the ratings could be downgraded if lease-adjusted debt/EBITDA is sustained above 4 times or EBITA to interest expense falls below 3.5 times. Foot Locker, Inc. (NYSE: FL) is a specialty athletic retailer operating more than 3,400 in 23 countries in North America, Europe, and Asia Pacific, as well as through its e-commerce channel. Banners include Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, Champs Sports, Runners Point, Sidestep, Eastbay, SIX:02 and CCS. Revenues for the twelve months ended May 4, 2014 were approximately $6.7 billion. The principal methodology used in this rating was the Global Retail Industry published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009 (and/or) the Government-Related Issuers methodology published in July 2010. GETTY IMAGES: Bank Debt Trades at 4% Off ---------------------------------------- Participations in a syndicated loan under which Getty Images Inc. is a borrower traded in the secondary market at 95.66 cents-on- the-dollar during the week ended Friday, July 25, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 1.15 percentage points from the previous week, The Journal relates. Getty Images Inc. pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 14, 2019, and carries Moody's B2 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. GLACIAL ENERGY: Bankruptcy Stays "Motylinski" Lawsuit ----------------------------------------------------- Chief District Judge Wilma A. Lewis stayed proceedings in the lawsuit, MICHAEL MOTYLINSKI, Plaintiff, v. GLACIAL ENERGY (V.I.), LLC and MARILYN LOBEL, Defendants, Civil Action No. 2013-127 (D.V.I.), following Glacial's bankruptcy filing. The Plaintiff filed the complaint on December 26, 2013, alleging that Glacial, his former employer, terminated Motylinski's employment in violation of Title 29 U.S.C. 2617(a) of the Family Medical Leave Act, and that the termination constituted wrongful discharge under Title 24 V.I.C. Sec. 76. The Complaint further alleges that Lobel, as Glacial's Chief Financial Officer, was authorized to act with respect to Plaintiff's employment, and is an "employer" subject to liability under the FMLA. The Plaintiff argued that the stay should not be extended to his claims against Lobel, because she is not a debtor in the bankruptcy proceedings. The Defendants countered that the proceedings should be stayed as to Lobel because Glacial is contractually obligated to indemnify her against any liability, legal fees, and costs arising out of these proceedings. A copy of the Court's July 21 Memorandum Opinion and Order is available at http://is.gd/eOrjVkfrom Leagle.com. About Gridway Energy Gridway Energy Holdings, Inc., and its affiliates, including Glacial Energy Holdings -- providers of electricity and natural gas in markets that have been restructured to permit retail competition -- sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10833) on April 10, 2014. The Debtors have 200,000 electric residential customers and 55,000 gash residential customers across the U.S. A large portion of the customers' energy consumption and revenue is generated in the northeast U.S., Ohio, Illinois and Texas (collectively accounting for 80% of revenue), with the remaining portion coming from California and other states. The Debtors blamed the bankruptcy due to lower revenue brought by increased market competition, which caused the Debtors to default on certain of their obligations. Gridway defaulted on $60 million of debt. Prepetition, the Debtors negotiated a stock purchase transaction with an interested buyer. But in March 2014, the purchaser withdrew from the transaction because of the large amount of debt that the purchaser would become liable through a stock transaction. The Debtors are represented by Michael R. Nestor, Esq., Joseph M. Barry, Esq., and Donald J. Bowman, Jr., Esq., at Young Conaway Stargatt & Taylor, LLP; and Alan M. Noskow, Esq., and Mark A. Salzberg, Esq., at Patton Boggs LLP. They employed Omni Management Group, LLC, as claims and notice agent. Gridway Energy estimated assets of $500 million to $1 billion and debt of more than $1 billion. The Creditors' Committee is represented by Sharon Levine, Esq., and Philip J. Gross, Esq., at Lowenstein Sandler LLP; and Frederick B. Rosner, Esq., and Julia B. Klein, Esq., at The Rosner Law Group LLC. Vantage is represented in the case by Ingrid Bagby, Esq., David E. Kronenberg, Esq., Kenneth Irvin, Esq., and Karen Dewis, Esq., at Cadwalader, Wickersham & Taft LLP, and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A. GLOBAL GEOPHYSICAL: Autoseis Inc. Has Until Sept. 24 to File Plan ----------------------------------------------------------------- The Bankruptcy Court extended Autoseis, Inc.'s exclusive periods to file a Plan of Reorganization until Sept. 24, 2014, and solicit acceptances for that Plan until Nov. 19. As reported in the Troubled Company Reporter on July 21, 2014, the Debtor, in its application stated that if the request is granted, the Debtor's plan would be due on Sept. 23. Since the petition date of March 24, 2014, the Debtor has undergone litigation with its prepetition lenders regarding DIP financing. Ultimately the dispute was resolved, and the Debtor has been able to focus on operational restructuring. The Debtor has also publicly restated its financial statements which were incorrect due to internal control issues. The Debtor has also filed over one thousand pages of Schedules and Statements of Financial Affairs. The Debtor also calmed the fears of suppliers and vendors so that its operations could continue. Additionally the Debtor has instituted the equivalent of a Chapter 15 ancillary proceeding in Colombia in order to stop a prepetition creditor's attempt to recoup $2.5 million in prepetition debt. The Debtor submitted that it is now in position to focus on formulating a Plan. The Debtor's prepetition noteholders well as the Official Committee of Unsecured Creditors support a 60-day extension. The Debtor contended that it is entitled to an extension for "cause" pursuant to Sec. 1121(d) of the Bankruptcy Code based on the significant progress it has made towards reorganization, the size and complexity of its case, the fact that it is current on its postpetition obligations, its timely filing of operating reports, and the fact that it is not seeking the extension as a means to pressure its creditors. About Global Geophysical 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. 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. GLOBAL GEOPHYSICAL: May Obtain Up to $5MM in Performance Bonds -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas authorized Autoseis, Inc., et al., to: -- obtain performance bonds, sureties, letters of credit, or similar securities up to $5 million; and -- open an account and establish a corporate credit card program with Bank of America. The Court held an expedited hearing on July 22, 2014. The Debtors, in their application, stated that as routine in their industry, the Debtors obtain new work through competitive bidding on contracts offered by potential customers. In addition to offering competitive pricing terms and superior service, the Debtors are often required to provide a letter of credit, surety, performance bond, or similar security as a condition of submitting a bid. The Debtors regularly obtained such forms of financial assurance prepetition. In this relation, the Debtors sought Court approval to continue the practice on a postpetition basis as a way to manage and grow their businesses flexibly and efficiently. Debtor Global Geophysical Services, Inc., the pledgor, Bank of America, N.A., as collateral agent, for itself, FIA Card Services, N.A. and any other subsidiaries or affiliates of Bank of America Corporation and its successors and assigns, entered into a Treasury Management Services Cash Collateral Assignment, Security and Control Agreement on June 13, 2014, extending indebtedness to the Debtors, and Bank of America, N.A., as depository under the Account. Pursuant to the agreement, among other things: 1. the pledgor will deposit $160,000 into the account on the Effective Date; 2. the pledgor agrees that it will at all times maintain funds in the account at least equal to $160,000, or such other amount as the secured party may from time to time in its sole discretion determine, based upon the amount and types of indebtedness and the creditworthiness of the Debtors; 3. the pledgor will deposit any required additional funds in the account within three business days of any notice by the secured party to do so; and 4. requiring or permitting funds in the account does not constitute a commitment by the secured party to extend credit to the Debtor. The Debtors are represented by: C. Luckey McDowell, Esq. Omar Alaniz, Esq. Ian E. Roberts, Esq. BAKER BOTTS L.L.P. 2001 Ross Avenue Dallas, TX 75201 Tel: (214) 953-6500 Fax: (214) 953-6503 E-mail: luckey.mcdowell@bakerbotts.com omar.alaniz@bakerbotts.com ian.roberts@bakerbotts.com - and - Shelby A. Jordan, Esq. Nathaniel Peter Holzer, Esq. JORDAN, HYDEN, WOMBLE, CULBRETH & HOLZER, P.C. Suite 900, Bank of America 500 North Shoreline Corpus Christi, TX 78471 Tel: (361) 884-5678 Fax: (361) 888-5555 E-mail: sjordan@jhwclaw.com pholzer@jhwclaw.com 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. GLOBAL GEOPHYSICAL: Hilco Industrial Approved as Sales Agent ------------------------------------------------------------ The Bankruptcy Court authorized Global Geophysical Services, Inc., et al., to employ Hilco Industrial, LLC as marketing and sales agent. As reported in the Troubled Company Reporter on June 30, 2014, Hilco Industrial, together with Alex Lyon & Son Sales Managers and Auctioneers, Inc., as joint venture partners, has agreed to provide the Debtors with certain liquidation services regarding the Debtors' De Minimis Assets, including, but not limited to, the strategic marketing of the assets to potential buyers, conducting sales negotiations, and holding sales auctions, as further discussed herein. As a general sales strategy, the De Minimis Assets will be offered in two distinct phases including: a private-treaty negotiated offering of a specific, mutually agreed- upon group of assets to strategically chosen potential buyers, to be followed by a global live and webcast-based auction sale to sell any remaining assets. The marketing plan will include, as applicable, advertising in newspapers, and trade publications, the development and distribution of a direct mail brochure or postcard, listing the sales on Hilco's website, distributing e- mail correspondence to prospects, and making direct contact with prospective purchasers. The De Minimis Asset Sale Agent will also oversee all aspects of managing the sale of the assets including qualifying prospects, previewing the assets, marshaling and arranging the assets for sale, lotting and cataloging, photographing, conducting the auction sale, and supervising the removal of the assets. The De Minimis Asset Sales Agent has guaranteed that the Debtors will not receive less than $2,500,000 (the "Guaranteed Amount") on account of the sale of the De Minimis Assets. Upon entry of the order approving the De Minimis Asset Sales Agent's retention, the De Minimis Asset Sales Agent will commence its marketing efforts and, to the extent applicable, relocation of the De Minimis Assets to the De Minimis Asset Sales Agent's sale yards After the De Minimis Asset Sales Agent's payment of the Guaranteed Amount to the Debtors, the De Minimis Asset Sales Agent shall be entitled to retain all gross sale proceeds up to the Guaranteed Amount and an additional $110,000. After these amounts have been satisfied through sales proceeds, any further proceeds from the sale of assets, including any buyer's premiums, shall be shared between the Debtors and the De Minimis Asset Sales Agent, at percentage rates of 80% to the Debtors and 20% to the De Minimis Asset Sales Agent. Ian S. Fredericks, vice president and assistant general counsel of Hilco Trading, LLC, the managing member of Hilco Industrial, LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. About 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. 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. GLOBAL GEOPHYSICAL: UHY LLP Approved as Independent Auditor ----------------------------------------------------------- The Bankruptcy Court authorized Global Geophysical Services, Inc., et al., to employ UHY LLP as independent auditor, nunc pro tunc to June 9, 2014. As reported in the Troubled Company Reporter on July 22, 2014, 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. 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. UHY will also 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. 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. 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. GREEN EARTH: Paul Andrecola Reports 39% Equity Stake ---------------------------------------------------- In a Schedule 13D filed with the U.S. Securities and Exchange Commission, Paul N. Andrecola disclosed that as of May 20, 2014, he beneficially owned 112,382,603 shares of common stock of Green Earth Technologies, Inc., representing 39 percent of the shares outstanding. On May 20, 2014, the Company issued 100,000,000 Shares to Mr. Andrecola in consideration for exclusive licenses to certain of InventeK's intellectual property pursuant to the Intellectual Property Exclusive License and Distribution Agreement dated as of May 20, 2014, between the Company, on the one hand, and Mr. Andrecola and InventeK, on the other hand. A full-text copy of the regulatory filing is available at: http://is.gd/WxfjFn About Green Earth Technologies White Plains, N.Y.-based Green Earth Technologies, Inc. (OTC QB: GETG) -- http://www.getg.com/-- markets, sells and distributes bio-degradable performance and cleaning products. The Company's product line crosses multiple industries including the automotive aftermarket, marine and outdoor power equipment markets. Green Earth reported a net loss of $6.59 million on $8.03 million of net sales for the year ended June 30, 2013, as compared with a net loss of $11.26 million on $7.38 million of net sales during the prior year. The Company's balance sheet at March 31, 2014, showed $10.30 million in total assets, $26.76 million in total liabilities and a $16.46 million total stockholders' deficit. Friedman LLP, in East Hanover, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2013. The independent auditors noted that the Company's losses, negative cash flows from operations, working capital deficit, related party note currently in default and its ability to pay its outstanding liabilities through fiscal 2014 raise substantial doubt about its ability to continue as a going concern. GREEN MOUNTAIN: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Green Mountain Management, LLC 100 Green Mountain Parkway Adamsville, AL 35005 Case No.: 14-64287 Type of Business: Environmental Services, Construction/Engineering Chapter 11 Petition Date: July 25, 2014 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Judge: Hon. Barbara Ellis-Monro Debtor's Counsel: Sage M. Sigler, Esq. ALSTON & BIRD, LLP 1201 W. Peachtree Street Atlanta, GA 30309-3424 Tel: (404) 881-4531 Fax: (404) 253-8561 Email: sage.sigler@alston.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Daniel B. Cowart, sole member of Georgia Flattop Partners, LLC, and chairman of Green Mountain Management, LLC. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ ET Environmental Consulting $203,383 Corporation, LLC Adams and Reese, LLP Professional $154,581 Services Dan Cowart, Inc. Professional $149,902 Services Michael J. Selwood Consulting $90,000 Solid Waste Authority of Waste $59,828 the City of Adamsville, Collection Alabama Services Crumbley Backhoe Service Equipment Rental $41,193 Hager Oil Co Vendor $38,559 Veterans Landscaping Vendor $28,746 Company, Inc. Kitchens Kelley Gaynes, Professional $28,077 P.C. Services Mintz, Levin, Cohn, Ferris, Professional $22,495 Glovsky and Popeo, P.C. Services Crusher Works LLC Vendor $15,976 Inertia Machine Corporation Vendor $15,826 Scotts's Excavating & Vendor $12,097 Hauling, Inc. Stone & Sons Electrical Vendor $11,980 Contractors, Inc. Tractor & Equipment Company Vendor $10,202 M&M Tire and Mechanical Vendor $9,326 Services, Inc. Truckpro - Birmingham Vendor $8,996 Cintas Vendor $8,536 Carroll's Truck & Repair Inc. Vendor $7,538 Green Worx, LLC Vendor $6,275 GREENCHOICE BANK: FDIC Is Receiver; Providence Assumes Deposits --------------------------------------------------------------- GreenChoice Bank, fsb, Chicago, Illinois, was closed July 25 by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Providence Bank, LLC, South Holland, Illinois, to assume all of the deposits of GreenChoice Bank, fsb. The three branches of GreenChoice Bank, fsb would reopen as branches of Providence Bank, LLC during their normal business hours. Depositors of GreenChoice Bank, fsb will automatically become depositors of Providence Bank, LLC. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of GreenChoice Bank, fsb should continue to use their existing branch until they receive notice from Providence Bank, LLC that it has completed systems changes to allow other Providence Bank, LLC branches to process their accounts as well. Friday evening and over the weekend, depositors of GreenChoice Bank, fsb were able to access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual. As of March 31, 2014, GreenChoice Bank, fsb had approximately $72.9 million in total assets and $71.0 million in total deposits. In addition to assuming all of the deposits of the failed bank, Providence Bank, LLC agreed to purchase approximately $67.7 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition. Customers with questions about the transaction should call the FDIC toll-free at 1-800-894-2927. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; on Monday from 8 a.m. to 8 p.m., CDT; and thereafter from 9:00 a.m. to 5:00 p.m., CDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/greenchoice.html The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $14.2 million. Compared to other alternatives, Providence Bank, LLC's acquisition was the least costly resolution for the FDIC's DIF. GreenChoice Bank, fsb is the 14th FDIC-insured institution to fail in the nation this year, and the fourth in Illinois. The last FDIC-insured institution closed in the state was Valley Bank, Moline, on June 20, 2014. GUIDED THERAPEUTICS: Granted Additional Key Patent for LuViva ------------------------------------------------------------- Guided Therapeutics, Inc., announced that U.S. Patent and Trademark Office granted a new patent with 22 claims that support the technology behind the LuViva(R) Advanced Cervical Scan. Patent number 8,781,560 B2 entitled "Method and Apparatus for Rapid Detection and Diagnosis of Tissue Abnormalities" covers the use of two types of spectroscopy in conjunction with images of tissue to detect abnormalities in tissue. Most importantly, the inventions described in the patent function as an additional bridge from theoretical models of tissue spectroscopy to a fully functional, commercially viable cancer detection system that can be utilized as a platform for many types of epithelial cancers. "This is an important patent that extends additional protections to key aspects of the underlying technology that make LuViva such a powerful tool in the early detection of disease that leads to cervical cancer," said Gene Cartwright, chief executive officer of Guided Therapeutics. "Our intellectual property creates a foundation on which we build shareholder value and we will continue to aggressively develop additional patents in the U.S. and worldwide." Guided Therapeutics now holds 21 patents with four additional patents pending for its light-based biophotonic disease detection technology. For more information, visit: www.guidedinc.com/Patents.htm About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. Guided Therapeutics reported a net loss attributable to common stockholders of $10.39 million on $820,000 of contract and grant revenue for the year ended Dec. 31, 2013, as compared with a net loss of $4.35 million on $3.33 million of contract and grant revenue during the prior year. UHY LLP, in Sterling Heights, Michigan, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's recurring losses from operations and accumulated deficit raise substantial doubt about its ability to continue as a going concern. Bankruptcy Warning "The Company's capital-raising efforts are ongoing. If sufficient capital cannot be raised by the end of 2014, the Company has plans to curtail operations by reducing discretionary spending and staffing levels, and attempting to operate by only pursuing activities for which it has external financial support and additional NCI, NHI or other grant funding. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection," the Company stated in the Form 10-Q for the quarter ended March 31, 2014. H&M OIL: Dallas Judge Rules in Suit Against Former Manager ---------------------------------------------------------- Douglas Brickley, Chapter 7 trustee of the bankruptcy estate of H&M Oil & Gas, LLC, alleged various claims and causes of action against H&M's former Manager, Leon Greenblatt, III, and H&M's postpetition lender, Scattered Corporation, including: Count 1 -- breach of the Court-approved debtor-in-possession financing agreement (the "DIP Agreement") against Scattered; Count 2 -- negligence and gross negligence against Scattered; Count 3 -- alter ego/control theory against Scattered; Count 4 -- breach of fiduciary duty against Greenblatt; Count 5 -- equitable subordination of claims against Scattered and Greenblatt; Count 6 -- objection to the administrative claim filed by Greenblatt; Count 7 -- alter ego against Greenblatt; Count 8 -- fraudulent conveyances under 11 U.S.C. Sec. 548 against Scattered and Greenblatt; Count 9 -- fraudulent conveyance under 11 U.S.C. Sec. 544 and Texas law against Scattered and Greenblatt; Count 10 -- recovery of avoided transfers under 11 U.S.C. Sec. 550 against Scattered and Greenblatt; Count 11 -- disallowance of claims under 11 U.S.C. Sec. 502(d) against Scattered and Greenblatt; and Count 12 -- recovery of attorneys' fees against Scattered. In his Second Amended Answer to Original Complaint and Counterclaim, Greenblatt alleged a counterclaim against the H&M estate for indemnification under the DIP Agreement and H&M's Amended Regulations of Limited Liability Company. Scattered has alleged no counterclaims against the estate. The majority of the claims were resolved prior to trial through either orders on dispositive motions or by voluntary withdrawal by the Trustee. The Court held a trial on June 9 to 11, 2014. At the conclusion of the trial, the Court directed briefing on several issues raised at trial. The last of the post-trial briefs was submitted on June 17, 2014, following which the Court took the matter under advisement. The only counts tried by the Court were: (1) as against Scattered, (Count 1) breach of the DIP Agreement and (Count 12) attorneys' fees;4 (2) as against Greenblatt, (Count 4) breach of fiduciary duty, (Count 5) equitable subordination, and (Count 6) objection to administrative claim; and (3) as against the estate, Greenblatt's counterclaim for indemnification. In a July 21, 2014 Memorandum Opinion available at http://is.gd/u1wRxgfrom Leagle.com, Bankruptcy Judge Barbara J. Houser ruled that, "Greenblatt is entitled to a judgment in his favor on his counterclaim for indemnification under the DIP Agreement in the amount of $448,976.40, plus prospective costs in the event that such judgment is appealed in the following amounts: (1) $30,000 for post-trial motions before this Court, (2) $35,000 for an appeal to the district court, (3) $25,000 for an appeal to the Fifth Circuit, (4) $25,000 for an application for writ of certiorari to the U.S. Supreme Court, and (5) $15,000 if that writ is granted, which shall be allowed as an administrative expense claim against H&M's Chapter 11 bankruptcy estate. Alternatively, if the Court erred in allowing Greenblatt's indemnification claim under the DIP Agreement, Greenblatt is entitled to a judgment in his favor on his counterclaim for indemnification under the LLC Regulations in the same amounts, which shall be allowed as a prepetition general unsecured claim in H&M's bankruptcy case." The case is, DOUGLAS J. BRICKLEY, CHAPTER 11 TRUSTEE, PLAINTIFF, v. SCATTERED CORPORATION and LEON A. GREENBLATT, III, DEFENDANTS. United States Bankruptcy Court, N.D. Texas, Dallas Division, ADV. PROC. NO. 13-3066-BJ (Bankr. N.D. Tex.). About H&M Oil H&M Oil & Gas, LLC, filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 12-32785) in its hometown Dallas on April 30, 2012. Another entity, Anglo-American Petroleum Corp. (Case No. 12-32786) simultaneously filed for Chapter 11. H&M Oil disclosed $297,119,773 in assets and $77,463,479 in liabilities as of the Chapter 11 filing. H&M Oil is an oil and gas production and development company. H&M, through its operating company, H&M Resources LLC, is focused on developing its leases in the Permian basin and Texas panhandle. Dallas, Texas-based Anglo-American Petroleum -- http://www.angloamericanpetroleum.com/-- is the holding corporation for H&M Oil. Judge Barbara J. Houser presides over the case. The Debtors are represented by Keith William Harvey, Esq., at Anderson Tobin PLLC, in Dallas. Lain Faulkner & Co., PC, serves as financial adviser. The Debtor filed a Plan in October 2012, designed to pay lender Prospect Capital Corp. by delivery of crude oil rather than cash. In November 2012, the bankruptcy judge approved the appointment of a trustee to replace management. The advent of a trustee automatically allows creditors to file reorganization plans. In addition to seeking appointment of a trustee, Prospect had been seeking permission to file a plan competing with H&M's. Douglas J. Brinkley, of The Claro Group, LLC, has been appointed as the Chapter 11 trustee. The U.S. Trustee selected Mr. Brinkley following after consultation with Keith Harvey, counsel for the Debtors, and Jason Brookner, counsel for the creditor. HARLAND CLARKE: Debt Financed Dividend No Impact on Moody's CFR --------------------------------------------------------------- Moody's says Harland Clarke Holdings Corp.'s $200 million debt financed dividend will not change the B2 Corporate Family Rating (CFR) or the B1 rating for the term loan tranches B-2, B-3 and B-4 and senior secured notes due in 2018 and 2020. The senior unsecured notes due 2021 that will be upsized from $540 million to $740 million will also remain unchanged at Caa1, but the LGD changes to LGD5 from LGD6. The outlook remains stable. Ratings Rationale The principal methodology used in this rating/analysis was the Global Publishing Industry published in December 2011. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Harland Clarke Holdings Corp., headquartered in San Antonio, TX, is a provider of check and check-related products, direct marketing services and customized business and home office products to financial services, retail and software providers as well as consumers and small business, and through its Scantron business, data collection, testing products, scanning equipment and tracking services to educational, commercial, healthcare and government entities. M&F Worldwide Corp. ("M&F") acquired check and related product provider Clarke American Corp. ("Clarke American") in December 2005 for $800 million and subsequently acquired the John H. Harland Company ("Harland") in May 2007 for $1.4 billion. M&F merged Clarke American and Harland to form Harland Clarke. M&F's remaining publicly traded shares were acquired by portfolio company, MacAndrews & Forbes Holdings Inc (MacAndrews) in December 2011. MacAndrews is wholly owned by Ronald O. Perelman. Harland entered into an agreement to acquire Valassis Communications, Inc. ("Valassis") in December 2013. Valassis is headquartered in Livonia, Michigan, provides promotional and advertising products including Shared Mail, Neighborhood Targeted, Free Standing Inserts, and International, Digital Media, & Services (coupon clearing, consulting and analytic services). Moody's expect revenue of combined companies to be over $3 billion over the next twelve months. HERCULES OFFSHORE: Posts $6.6-Mil. Net income in Second Quarter --------------------------------------------------------------- Hercules Offshore, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $6.64 million on $242.96 million of revenue for the three months ended June 30, 2014, as compared with a net loss of $27.37 million on $211.45 million of revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income of $26.56 million on $499.69 million of revenue as compared with net income of $7.78 million on $397.65 million of revenue for the same period last year. The Company's balance sheet at June 30, 2014, showed $2.30 billion in total assets, $1.44 billion in total liabilities and $853.56 million in stockholders' equity. John T. Rynd, chief executive officer and president of Hercules Offshore stated, "Second quarter results reflect a general slowdown in domestic drilling activity, as well as idle time on certain international rigs. The slowdown in the U.S. Gulf of Mexico has largely been driven by significant property transfers and consolidation among our customer base, which has led to disruptions in their respective drilling programs. Our latest discussions with various domestic customers suggest activity levels will rebound late this year. In the meantime, we have taken proactive measures to reduce costs, including our recent decision to postpone the regulatory survey on one of our domestic rigs until visibility improves. Dayrates remain firm in the U.S. Gulf of Mexico, as stable crude oil prices support customer economics. Our International Offshore segment was impacted by downtime, due in part to the contract termination on the Hercules 267 in Angola. Lastly, International Liftboats experienced wide fluctuations in utilization, principally due to poor weather in West Africa. Customer capital spending reductions in Nigeria has also hindered activity." "While our third quarter results will likely be impacted by the current operational challenges, conditions are expected to improve toward year end. We are also making progress on the construction of our newbuild rig, which holds a five year contract with Maersk Oil. This award demonstrates how we are able to leverage the skillset of our organization to advance the Company's strategic initiatives of expanding our operational footprint and high- grading our fleet." A full-text copy of the Form 10-Q is available for free at: http://is.gd/kGSxar Fleet Status Report On July 23, 2014, Hercules Offshore posted on its Web site at www.herculesoffshore.com a report entitled "Hercules Offshore Fleet Status Report". The Fleet Status Report includes the Hercules Offshore Rig Fleet Status (as of July 23, 2014), which contains information for each of the Company's drilling rigs, including contract dayrate and duration. The Fleet Status Report also includes the Hercules Offshore Liftboat Fleet Status Report, which contains information by liftboat class for June 2014, including revenue per day and operating days. The Fleet Status Report can be found at http://is.gd/RrLHVf About Hercules Offshore Hercules Offshore Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. Hercules incurred a net loss of $68.11 million in 2013, a net loss of $127 million in 2012 and a net loss of $76.12 million in 2011. * * * The Troubled Company Reporter said on April 11, 2013, that Moody's Investors Service upgraded Hercules Offshore, Inc.'s Corporate Family Rating to B2 from B3. Hercules' B2 CFR is supported by its improved cash flow and lower leverage on the back of increased drilling activity and higher day-rates in the Gulf of Mexico (GOM) As reported by the TCR on Nov. 6, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Houston-based Hercules Offshore Inc. to 'B' from 'B-'. "The upgrade reflects the improving market conditions in the Gulf of Mexico and our expectations that Hercules' fleet will continue to benefit," said Standard & Poor's credit analyst Stephen Scovotti. HYDROCARB ENERGY: Three Directors Resigned ------------------------------------------ Hydrocarb Energy Corporation disclosed that on July 18, 2014, Gregory M. Larberg, Paul C. Schillmoller and Pasquale V. Scaturro resigned as directors of the Company. On July 20, 2014, the Board appointed Kent Watts as executive chairman. Also on July 20, the Board of Directors approved amendments to the Bylaws to set forth the duties of the executive chairman, giving him authority over financings, analyst relations, investor relations, public relations, transfer agent relations, legal counsel, and the business plan. The amendments also state that the bylaws may be amended by majority written consent of shareholders. About Hydrocarb Energy Hydrocarb Energy, formerly known as Duma Energy Corp, is a publicly-traded Domestic and International energy exploration and production company targeting major under-explored oil and gas projects in emerging, highly prospective regions of the world. With exploration concessions in Africa, production in Galveston Bay and Oil Field Services in the United Arab Emirates, the Company maintain offices in Houston, Texas, Abu Dhabi, UAE and Windhoek, Namibia. Duma Energy incurred a net loss of $40.47 million for the year ended July 31, 2013, a net loss of $4.57 million for the year ended July 31, 2012, and a net loss of $10.28 million for the year ended July 31, 2011. The Company's balance sheet at April 30, 2014, showed $26.73 million in total assets, $15.22 million in total liabilities and $11.50 million in total equity. INTERLEUKIN GENETICS: 2 Directors Elected at Annual Meeting ----------------------------------------------------------- At the 2014 annual meeting of stockholders of Interleukin Genetics, Inc., held on July 23, 2014, the stockholders: (1) elected Kenneth S. Kornman and Dayton Misfeldt as Class II directors to each serve for a three-year term expiring at the Company's 2017 annual meeting of stockholders; (2) ratified the appointment of Grant Thornton LLP as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2014; and (3) approved, on an advisory basis, the compensation of the Company's named executive officers. About Interleukin Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized health company that develops unique genetic tests to provide information to better manage health and specific health risks. Interleukin Genetics incurred a net loss of $7.05 million on $2.42 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss of $5.12 million on $2.23 million of total revenue in 2012. Grant Thornton LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 3, 2013. The independent auditors noted that the Company has incurred recurring losses from operations and has an accumulated deficit that raise substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet at March 31, 2014, showed $7.83 million in total assets, $4.11 million in total liabilities, all current, and $3.72 million in total stockholders' equity. Bankruptcy Warning "The amount of cash we generate from operations is currently not sufficient to continue to fund operations and grow our business. We expect that our current and anticipated financial resources, including the proceeds from the May 2013 Private Placement and assuming the receipt of an additional $5 million in gross proceeds from the second tranche of the May 2013 Private Placement will be adequate to maintain our current and planned operations at least through the next twelve months. If we do not receive the additional $5 million from our current investors we will be forced to seek additional funding sources. If we are unable to obtain such funding, we may have to end our operations and seek protection under bankruptcy laws," the Company said in the Quarterly Report for the period ended March 31, 2014. KEMET CORP: Incurs $3.5 Million Net Loss in Second Quarter ---------------------------------------------------------- Kemet Corporation reported a net loss of $3.54 million on $212.88 million of net sales for the quarter ended June 30, 2014, as compared with a net loss of $35.14 million on $202.05 million of net sales for the same period in 2013. As of June 30, 2014, the Company had $838.64 million in total assets, $620.39 million in total liabilities and $218.25 million in total stockholders' equity. "We were pleased that the financial results for the quarter were consistent with our expectations. Our operating margins continued to improve even though revenue, in line with our forecast, declined slightly from the prior quarter," stated Per Loof, KEMET's chief executive officer. "Margins remain our primary focus now that the majority of our restructuring efforts have concluded and we expect to see noteworthy improvement in our operating margins next quarter with continued improvement each quarter throughout this fiscal year driven by our prior cost reduction actions," continued Loof. A full-text copy of the preliminary report is available for free at http://is.gd/uYA37M Annual Meeting Results On July 24, 2014, the Company held its annual meeting of stockholders at which four proposals were voted upon. The stockholders: (1) elected Frank G. Brandenberg, Joseph V. Borruso and Erwin Maddrey, II, as directors to serve for three-year terms to expire in 2017; (2) ratified the appointment of Ernst & Young LLP as the Company's independent registered public accounting firm for the fiscal year ending March 31, 2015; (3) approved the 2014 Amendment and Restatement of the KEMET Corporation 2011 Omnibus Equity Incentive Plan; and (4) approved, on an advisory basis, the compensation paid to the Company's named executive officers. The Amended Plan had previously been unanimously approved and adopted by the Company's Board of Directors, subject to stockholder approval. The Amended Plan amends and restates the 2011 KEMET Corporation Omnibus Equity Incentive Plan, in the following key respects: * increases the number of shares authorized for issuance under the Original Plan by 2,600,000 shares; * allows any unexercised, unconverted or undistributed portion of any award made under the under the Original Plan, the 2004 Long-Term Equity Incentive Plan, the 1995 Executive Stock Option Plan and the 1992 Key Employee Stock Option or the Amended Plan resulting from termination, expiration or forfeiture of such award, any shares subject to any award made under the Amended Plan or Prior Plans settled for cash and any shares issued pursuant to restricted stock awards under the Amended Plan and subsequently reacquired by the Company due to termination, expiration or forfeiture of the restricted stock award, to be again available for issuance as an award under the Amended Plan; * limits the number of shares during any fiscal year that may be granted to director and non-director participants pursuant to options or stock appreciation rights and the number of shares that may be earned by director and non-director participants with respect to restricted stock awards, restricted stock unit awards, performance awards and other share-based awards; and * subject to certain limited exceptions, imposes a minimum vesting period for options and SARs of not less than one year from the date of grant. About KEMET KEMET, based in Greenville, South Carolina, is a manufacturer and supplier of passive electronic components, specializing in tantalum, multilayer ceramic, film, solid aluminum, electrolytic, and paper capacitors. KEMET's common stock is listed on the NYSE under the symbol "KEM." The Company's balance sheet at March 31, 2014, showed $843.01 million in total assets, $620.08 million in total liabilities and $222.93 million in total stockholders' equity. * * * As reported by the TCR on March 26, 2013, Moody's Investors Service downgraded KEMET Corp.'s Corporate Family Rating to Caa1 from B2 and the Probability of Default Rating to Caa1-PD from B2- PD based on Moody's expectation that KEMET's liquidity will be pressured by maturing liabilities and negative free cash flow due to the interest burden and continued operating losses at the Film and Electrolytic segment. As reported by the TCR on Aug. 9, 2013, Standard & Poor's Ratings Services lowered its corporate credit rating on Simpsonville, S.C.-based KEMET Corp. to 'B-' from 'B+'. "The downgrade is based on continued top-line and margin pressures and lagging results from the restructuring of the Film & Electrolytic [F&E] business, which combined with cyclical weak end-market demand, has resulted in sustained, elevated leverage well in excess of 5x, persistent negative FOCF, and diminishing liquidity," said Standard & Poor's credit analyst Alfred Bonfantini. KEY SAFETY: Moody's Rates Upsized $525MM 1st Lien Loan 'Ba2' ------------------------------------------------------------ Moody's Investors Service affirmed the rating on new Key Safety Systems, Inc.'s upsized first lien senior secured bank credit facilities at Ba2. In a related action, Moody's affirmed Key Safety's Corporate Family Rating at B1 and lowered the Probability of Default Ratings to B2-PD from B1-PD. The rating outlook is stable. The upsized first lien senior secured bank credit facilities results from a revision to the company's proposed capital structure following the acquisition by FountainVest Partners of a 67.9% majority stake in Key Safety from Crestview Partners. The upsized amount of the first lien senior secured term loan by $105 million will be used to replace the formerly proposed $100 million second lien senior secured term loan. Concurrently, the commitment amount of the proposed first lien senior secured revolving credit facility will be reduced to $75 million from $80 million. The revised structure is expected to result in lower interest costs. See Moody's press release dated 7 July 2014. The following ratings were affirmed: Corporate Family Rating, at B1; Upsized $525 million first lien senior secured term loan, at Ba2 (LGD2); Revised $75 million first lien senior secured revolving credit facility, at Ba2 (LGD2) Outlook at Stable The following rating was lowered: Probability of Default, to B2-PD from B1-PD; The following rating was withdrawn: B2 (LGD5), for the $100 million second lien senior secured term loan. The ratings for Key Safety under its prior ownership structure will be withdrawn following the closing of the current transaction. Rating Rationale The lowering of Key Safety's Probability of Default Rating to B2- PD reflects the change in the company's capital structure to an all first lien bank transaction. Under this scenario Moody's Loss Given Default methodology assumes that the bank lenders have a stronger ability to call a default earlier than under a mixed capital structure scenario. Under distressed conditions, this ability helps preserve more enterprise value which may deteriorate with the passage of time involved in negotiating with other creditor classes. As a result, the potential for a higher recovery mitigates the dilution of asset coverage resulting from the upsizing of the first lien term loan leaving its rating unchanged. Key Safety Systems, Inc., headquartered in Sterling Heights, Michigan, primarily designs, engineers and manufactures airbags and inflators, seat belts, and steering wheels for the global automotive industry. The principal methodology used in this rating was Global Automotive Supplier Industry published in May 2013. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. KID BRANDS: Committee Opposes DIP Loan From Salus ------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Kid Brands, Inc.'s object the Debtors' request to obtain postpetition financing and use cash collateral, complaining that, while it does not object to DIP financing that is necessary, reasonable and adequate, the DIP Facility proposed by the Debtors is nothing more than a vehicle for Salus Capital Partners to foreclose on its collateral quickly in a favorable forum, while simultaneously burdening the Debtors' estates with excessive costs and encumbering assets that are presently available for general unsecured creditors. Law360 said Kid Brands proposes to tap $49 million in DIP financing from Salus and Sterling National Bank. The DIP Lenders were also the lenders on a $60 million revolving credit before bankruptcy, Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported. The U.S. Trustee also objects to giving Salus liens on lawsuits that weren't already in the collateral package and called release provisions "broad, open-ended, and wide reaching," Mr. Rochelle said. 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. LEO MOTORS: Appoints Jeong Youl Choi as Chief Financial Officer --------------------------------------------------------------- The Board of Directors of Leo Motors, Inc., appointed Mr. Jeong Youl Choi to serve as the Company's chief financial officer. Mr. Choi currently serves as a member of the Company's Board of Directors. Mr. Choi joined the Company in January of 2012. Currently, Mr. Choi serves as the chief executive officer of Leo Motors, Co., Ltd., one of the Company's Korean branches. Previously, from 2008 through 2012, Mr. Choi worked as an independent financial consultant. Mr. Choi worked as chief executive officer of Neo Solar, a solar power company, from 2006 to 2007. Mr. Choi was chief executive officer of Good EMG, an entertainment company, from 2007 to 2008. Mr. Choi helped to stage the A1 Grand prix Korea, World Motor Racing Challenge for National team, 2007 while at Good EMG. Mr. Choi received his degree at the Business School of Yonsei University. On July 23, 2014, the Board of Directors of the Company appointed Mr. Jun Hee Won and Mr. Seok Heo to each serve as members of the Company's Board of Directors. Mr. Jun Hee Won joined the Company in 2007 and served as a research engineer until 2010. Beginning in 2010 and until the present, Mr. Won has served as chief executive officer of LGM Co., Ltd., one of the Company's newly acquired Korean branches. Mr. Won received his Bachelor's degree in aerospace engineering and electronic engineering from Sejong University and his Master's degree in converging technology from Hansung University. Mr. Seok Heo founded and served as chief executive officer of Summer Rain Communication Co., Ltd. From 2004 until 2006 during which time he managed on and off line integrated communication services. In 2008, Mr. Heo co-founded and, until 2011, served as chief executive officer of Templicher Game Studio where he managed and produced on-line gaming systems. From 2011 until the present time Mr. Heo worked as a freelance programmer. Mr. Heo received his bachelor's degree in computer science from Korea Advanced Institute of Science and Technology and his Master's degree in computer science from Yonsei University. There is no family relationship between either of Mr. Jun Hee Won or Mr. Seok Heo and any of the Company's other officers and directors. Except for the aforementioned appointment and actions, there has been no transaction or currently proposed transaction, in which the Company was or is to be a participant and the amount involved exceeds $120,000, and in which Mr. Won or Mr. Heo had or will have a direct or indirect material interest since the beginning of the Company's last fiscal year. About Leo Motors Headquartered in Hanam City, Gyeonggi-do, Republic of Korea, Leo Motors, Inc., a Nevada corporation, is currently engaged in the research and development of multiple products, prototypes and conceptualizations based on proprietary, patented and patent pending electric power generation, drive train and storage technologies. In 2011, the Company determined its investment in Leo B&T Inc. an investment account was impaired and recorded an expense of $4.5 million. During the 2012 year the Company had a net non operating income largely from the result of the forgiveness of debt for $1.3 million. Leo Motors reported a net loss of $1.24 million on $0 of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $1.88 million on $25,605 of revenues during the prior year. The Company's balance sheet at March 31, 2014, showed $1.14 million in total assets, $1.80 million in total liabilities and a $656,382 total deficit. John Scrudato CPA, in Califon, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred significant losses since inception of $16,871,850. This and other factors raise substantial doubt about the Company's ability to continue as a going concern. LEO MOTORS: Asher Enterprises Holds 5% Equity Stake --------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, Asher Enterprises, Inc., reported that as of July 25, 2014, it beneficially owned 971,337 shares of common stock of Leo Motors, Inc., representing 5 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/ksW21W About Leo Motors Headquartered in Hanam City, Gyeonggi-do, Republic of Korea, Leo Motors, Inc., a Nevada corporation, is currently engaged in the research and development of multiple products, prototypes and conceptualizations based on proprietary, patented and patent pending electric power generation, drive train and storage technologies. In 2011, the Company determined its investment in Leo B&T Inc. an investment account was impaired and recorded an expense of $4.5 million. During the 2012 year the Company had a net non operating income largely from the result of the forgiveness of debt for $1.3 million. Leo Motors reported a net loss of $1.24 million on $0 of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $1.88 million on $25,605 of revenues during the prior year. The Company's balance sheet at March 31, 2014, showed $1.14 million in total assets, $1.80 million in total liabilities and a $656,382 total deficit. John Scrudato CPA, in Califon, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred significant losses since inception of $16,871,850. This and other factors raise substantial doubt about the Company's ability to continue as a going concern. LPATH INC: Reports Interim Data From Phase 2a ASONEP Study ---------------------------------------------------------- Lpath, Inc., reported interim results in a Phase 2a single-arm, open-label trial where ASONEP is being investigated as a treatment for metastatic renal cell carcinoma in patients that have failed at least one therapy involving a VEGF inhibitor (e.g., Sutent(R)/ sunitinib maleate) and no more than one mTOR inhibitor (e.g., Afinitor(R)/everolimus), with a maximum of three failed treatments in all. This patient population is considered "last line," and the literature suggests cancer progression in this population within a one-to-two month time frame. Lpath has enrolled 26 patients in the study. ASONEP has a favorable safety profile thus far, with no serious adverse events (SAEs) deemed to be drug-related. The first 17 patients were initiated at a dose of 15 mg/kg. Of these "lower-dose" patients: 7 had progressive disease at or before the end of four months; 8 were progression-free at the four-month mark (with 1 of these patients deemed a partial responder per Response Evaluation Criteria in Solid Tumors (RECIST) criteria and with 3 of these patients experiencing reduced tumor volume, but not enough to be categorized as a RECIST-based partial responder); and 2 exited the study due to SAEs unrelated to the drug prior to the four-month mark (and are not considered evaluable). Notably, of the 8 patients that were stable or better as of month four, 2 are now in their fifteenth month on the study, 1 is in month thirteen, and 1 is in month ten. An additional patient was stable through month seven, but then missed six treatments during a vacation, and shortly thereafter progressed. The next 9 patients were initiated at a dose of 24 mg/kg. Of these higher-dose patients: 4 had progressive disease at or before the end of four months; 2 were progression-free at the four-month mark (with 1 of these 2 deemed a partial responder per RECIST criteria); and the remaining 3 have not yet reached their four- month mark. "A bimodal distribution of patients has emerged, whereby half the patients experience disease progression early, consistent with their "last line" prognosis, while the other half experience stable disease, with a number of them still progression-free beyond one year," said Dario Paggiarino, M.D., chief development officer of Lpath. "Based on the safety profile and the promising results, we have moved beyond the first cohort of 22 evaluable patients into a second cohort, allowing us to enroll up to a total of 54 evaluable patients." "I have been impressed with the preliminary signs of activity that I am observing with ASONEP," commented Sumanta Pal, M.D., from the City of Hope in Los Angeles, one of the lead investigators in the study. He continued, "The bimodal distribution is promising and supports an extension of the study. Furthermore, ASONEP appears to be well tolerated by the patients, which is not often the case with experimental cancer drugs." Extending the study to a second cohort will enable Lpath to confirm the preliminary results seen to date, as well as provide additional data as Lpath explores whether a biomarker could be predictive of activity. In the interim, Lpath will consider studying ASONEP (i) in RCC patients as a first-line or second-line treatment in combination with other drugs and (ii) in patients with other tumor types, either in combination or as a single agent. This clinical trial of ASONEP has been partially funded by a $3.0 million grant from the National Cancer Institute (NCI) under its Small Business Innovation Research (SBIR) Program. About Lpath, Inc. San Diego, Calif.-based Lpath, Inc. is a biotechnology company focused on the discovery and development of lipidomic-based therapeutics, an emerging field of medical science whereby bioactive lipids are targeted to treat human diseases. LPath reported a net loss of $6.56 million in 2013, a net loss of $2.75 million in 2012 and a net loss of $3.11 million in 2011. The Company's balance sheet at March 31, 2014, showed $21.63 million in total assets, $6.25 million in total liabilities and $15.37 million in total stockholders' equity. MCCLATHCY CO: Posts $91.6 Million Net Income in Second Quarter -------------------------------------------------------------- The McClatchy Company reported net income from continuing operations of $91.64 million on $291.95 million of revenues for the quarter ended June 29, 2014, as compared with net income from continuing operations of $10.96 million on $301.60 million of revenues for the quarter ended June 30, 2013. For the six months ended June 29, 2014, the Company reported net income from continuing operations of $75.58 million on $572.62 million of revenues as compared with a net loss from continuing operations of $2.23 million on $590.24 million of revenues for the six months ended June 30, 2013. ommenting on McClatchy's 2014 second quarter results, Pat Talamantes, McClatchy's president and CEO, said, "In the second quarter we saw a slowdown in print advertising among retail clients in the quarter. Still, we continued to see growth in direct marketing and digital advertising revenues and together these two sources accounted for 43% of our total advertising revenue in the quarter. "We continue to make significant progress with the digital transformation of our business," Talamantes said. "For the quarter, we posted just over 10% growth in total digital-only revenue, which increases to nearly 14% when excluding Apartments.com-related advertising revenue from both 2014 and 2013. Our audience metrics also continue to be strong. Monthly unique visitors were up 7.7% in the quarter compared to the same quarter last year and mobile users represented 43.8% of total monthly unique visitors in the quarter." A full-text copy of the press release is available for free at: http://is.gd/7YjUEp About The McClatchy Company Sacramento, Cal.-based The McClatchy Company (NYSE: MNI) -- http://www.mcclatchy.com/-- is the third largest newspaper company in the United States, publishing 30 daily newspapers, 43 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local Web sites in each of its markets which extend its audience reach. The Web sites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The News & Observer (Raleigh). The Company reported net income of $18.80 million for the year ended Dec. 29, 2013, as compared with a net loss of $144,000 for the year ended Dec. 30, 2012. As of Dec. 29, 2013, the Company had $2.61 billion in total assets, $2.37 billion in total liabilities, and $240.38 million in stockholders' equity. * * * McClatchy carries a 'Caa1' corporate family rating from Moody's Investors Service. In May 2011, Moody's changed the rating outlook from stable to positive following the company's announcement that it closed on the sale of land in Miami for $236 million. The outlook change reflects Moody's expectation that McClatchy will utilize the net proceeds to reduce debt, including its underfunded pension position, which will reduce leverage by approximately half a turn and lower required contributions to the pension plan over the next few years. McClatchy Co. carries a 'B-' Corporate Credit Rating from Standard & Poor's Ratings Services. MICRON TECHNOLOGY: Moody's Rates New Senior Unsecured Notes 'Ba3' ----------------------------------------------------------------- Moody's Investors Service, rated Micron Technology, Inc.'s new Senior Notes ("Senior Notes") due 2025 at Ba3. Proceeds of the Senior Notes are being used to refinance all of the 1.875% Convertible Senior Notes due 2031 ("2031B Notes"), with the remaining funds building Micron's pool of liquidity for further debt repayments and other general corporate purposes. Assignments: Issuer: Micron Technology, Inc. Senior Unsecured Regular Bond/Debenture, Assigned Ba3, LGD4 Ratings Rationale The issuance of the Senior Notes to refinance convertible debt with a GAAP book value of $86 million, will lead to a modest increase in debt to EBITDA (Moody's adjusted) to about 1.5x from 1.3x currently (latest twelve months ended May 29, 2014). Nevertheless, Moody's expect Micron to continue reducing debt over the next year given Micron's strong free cash flow generation and cash balance ($4.3 billion at May 29, 2014) [$4.8 billion including long term marketable investments]. While debt to EBITDA is low relative to many other companies at the Ba rating level, leverage metrics can increase considerably during a cyclical downturn or a heavy capital program. The financial flexibility reflected by this level of leverage and liquidity is appropriate given the capital intensive and highly cyclical nature of the memory chip business, though a large contributor to the revenue cycles historically was the highly volatile DRAM segment, which now more closely resembles NAND following the segment's consolidation in 2013. Micron has good liquidity, based mostly on its $4.3 billion cash position [$4.8 billion including long term marketable investments], which provides the ability to maintain capital expenditures and to make opportunistic acquisitions during industry downturns. Furthermore, Moody's recognize the flexibility that Micron exhibited during the last industry downturn (2008- 2009) to temporarily defer capital expenditures, limiting the negative FCF and thus preserving cash. The stable outlook reflects Moody's expectation that Micron will continue to maintain financial leverage below 1.5x (Moody's adjusted) and improve financial flexibility as revenue and EBITDA increase due to strong end-market demand, disciplined market pricing, and Micron's improved operating efficiencies. Moody's expect that Micron will manage the DRAM production node transitions and both the NAND node transition and the technology transition to 3D NAND without material disruption to output levels. The rating could be upgraded as Micron both increases gross profit margin, indicating greater market pricing power, and shows evidence of improved operational efficiency, such that Moody's expect that operating margins (Moody's adjusted) will be sustained above the low digit teens percent through the cycle. Moody's would expect these improvements to occur within a market environment of continued stable market pricing and core growth in demand for DRAM and NAND. Maintenance of very strong liquidity, through access to cash and generally positive free cash flow, and for Micron to maintain a financial policy balancing the interests of creditors and shareholders would also be important considerations for any possible upgrade. The ratings could be downgraded if Micron does not execute successfully on its node transitions in DRAM and NAND, or in its transition to mass production of 3D NAND. The ratings could also come under pressure if industry pricing volatility returns to patterns experienced prior to the industry consolidation in 2013. If Moody's expect leverage to be sustained above 2.0x EBITDA (Moody's adjusted), the rating could be downgraded. The principal methodology used in this rating was Global Semiconductor Industry Methodology published in December 2012. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Micron Technology, Inc., based in Boise, Idaho, manufactures and markets semiconductor devices, principally DRAM, NAND Flash and NOR Flash memory, as well as other innovative memory technologies, packaging solutions and semiconductor systems. MINT LEASING: Sells $158,500 Convertible Note to KBM Worldwide -------------------------------------------------------------- The Mint Leasing, Inc., on July 9, 2014, sold KBM Worldwide, Inc., Convertible Promissory Note in the principal amount of $158,500, pursuant to a Securities Purchase Agreement, dated the same day. The Convertible Note bears interest at the rate of 8% per annum (22% upon an event of default) and is due and payable on April 15, 2015. All or any portion of the principal amount of the Convertible Note and all accrued interest is convertible at the option of the holder thereof into the Company's common stock at any time following the 180th day after the Convertible Note was issued. The conversion price of the Convertible Note is equal to the greater of (a) $0.00005 per share, and (b) 61% multiplied by the average of the three lowest trading prices of the Company's common stock on the ten trading days before any conversion (representing a discount of 39%). The conversion price is also subject dilutive protection as provided in the Convertible Note. At no time may the Convertible Note be converted into shares of common stock of the Company if that conversion would result in the Investor and its affiliates owning an aggregate of in excess of 4.99% of the then outstanding shares of the Company's shares of common stock. The Company may prepay in full the unpaid principal and interest on the Convertible Note, upon notice any time prior to the 180th day after the issuance date. Any prepayment is subject to payment of a prepayment amount ranging from 110% to 135% of the then outstanding balance on the Convertible Note (inclusive of accrued and unpaid interest and any default amounts then owing), depending on when that prepayment is made. The Company plans to repay the loan prior to any conversion. Jerry Parish Loan On July 18, 2014, Jerry Parish, the Company's sole officer and director and majority shareholder, loaned the Company $240,000 which accrues interest at the rate of 10% per annum, is due and payable on July 18, 2015, and is evidenced by a Promissory Note. About Mint Leasing Houston, Texas-based The Mint Leasing, Inc., is in the business of leasing automobiles and fleet vehicles throughout the United States. Mint Leasing reported net income of $3.22 million on $6.45 million of total revenues for the year ended Dec. 31, 2013, as compared with a net loss of $238,969 on $9.97 million of total revenues in 2012. The Company's balance sheet at March 31, 2014, showed $18.72 million in total assets, $14.78 million in total liabilities and $3.94 million in total stockholders' equity. Bankruptcy Warning "We do not currently have any commitments of additional capital from third parties or from our sole officer and director or majority shareholders. We can provide no assurance that additional financing will be available on favorable terms, if at all. If we choose to raise additional capital through the sale of debt or equity securities, such sales may cause substantial dilution to our existing shareholders and/or trigger the anti- dilution protection of the Warrants. If we are not able to obtain additional funding to repay the Amended Loan and our other outstanding notes payable and debt facilities, we may be forced to abandon or curtail our business plan, which may cause any investment in the Company to become worthless. Our independent auditor has expressed substantial doubt regarding our ability to continue as a going concern. If we are unable to continue as a going concern, we may be forced to file for bankruptcy protection, may be forced to cease our filings with the Securities and Exchange Commission, and the value of our securities may decline in value or become worthless," the Company said in the 2013 Annual Report. MOMENTIVE SPECIALTY: 2014 Annual Incentive Plan Okayed ------------------------------------------------------ As previously disclosed on a Current Report on Form 8-K that Momentive Specialty Chemicals Inc. filed on March 26, 2014, the Compensation Committee of the Board of Directors of the Company and the Compensation Committee of the Board of Managers of Momentive Performance Materials Holdings LLC, the Company's indirect parent company, approved the 2014 annual incentive compensation plan for the Company. The Company's named executive officers and other specified members of management are eligible to participate in the Plan. On July 24, 2014, the MSC Compensation Committee agreed that, following the audit of the 2014 financial results and the determination of the achievement of the performance targets under the Plan, any participant, including each of the Company's named executive officers, who does not receive a payment of at least 30% of such participant's target payout, will receive a discretionary bonus payment in an amount that raises such participant's payout to 30% of their target payout. Payment of the Guaranteed Amount is conditioned upon the participant meeting the employment requirements described in the Plan. About Momentive Specialty Momentive Specialty Chemicals, Inc., headquartered in Columbus, Ohio, is a leading producer of thermoset resins (epoxy, formaldehyde and acrylic). The company is also a supplier of specialty resins for inks and specialty coatings sold to a diverse customer base as well as a producer of commodities such as formaldehyde, bisphenol A, epichlorohydrin, versatic acid and related derivatives. Momentive Specialty reported a net loss of $634 million on $4.89 billion of net sales for the year ended Dec. 31, 2013, as compared with net income of $346 million on $4.75 billion of net sales for the year ended Dec. 31, 2012. As of March 31, 2014, the Company had $2.95 billion in total assets, $5.05 billion in total liabilities and a $2.10 billion total deficit. * * * Momentive Specialty carries a 'B-' issuer credit rating from Standard & Poor's Ratings Services. It has 'B3' corporate family and probability of default ratings from Moody's Investors Service. As reported by the TCR on May 5, 2014, Moody's Investors Service affirmed Momentive Specialty Chemicals Inc's (MSC) corporate family rating (CFR) at B3 but changed the ratings outlook to negative due to weak credit metrics and the expectation that credit metrics will not return to levels fully supportive of the B3 Corporate Family Rating in 2014. MOTORS LIQUIDATION: GUC Trust Report for June 30 Quarter Filed -------------------------------------------------------------- Pursuant to the Amended and Restated Motors Liquidation Company GUC Trust Agreement dated as of June 11, 2012, and between the parties thereto, as amended, Wilmington Trust Company, acting solely in its capacity as trust administrator and trustee of the Motors Liquidation Company GUC Trust, is required to file certain GUC Trust Reports with the Bankruptcy Court for the Southern District of New York. In addition, pursuant to that certain Bankruptcy Court Order Authorizing the GUC Trust Administrator to Liquidate New GM Securities for the Purpose of Funding Fees, Costs and Expenses of the GUC Trust and the Avoidance Action Trust, dated March 8, 2012, the GUC Trust Administrator is required to file certain quarterly variance reports as described in the third sentence of Section 6.4 of the GUC Trust Agreement with the Bankruptcy Court. On July 25, 2014, the GUC Trust Administrator filed the GUC Trust Report required by Section 6.2(c) of the GUC Trust Agreement together with the Budget Variance Report, each for the fiscal quarter ended June 30, 2014. In addition, the Motors Liquidation Company GUC Trust announced that no distribution in respect of its Units is anticipated for the fiscal quarter ended June 30, 2014. A copy of the Bankruptcy Court filing is available for free at: http://is.gd/0bXpNx About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation Company was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. NATIONAL FINANCIAL: Moody's Keeps B3 CFR Over Increased Term Loan ----------------------------------------------------------------- Moody's Investors Service says the ratings of National Financial Partners Corp. (NFP - corporate family rating B3, probability of default rating B3-PD) are not affected by its plan to borrow an incremental $75 million under the accordion feature of its senior secured term loan. The company plans to use net proceeds to fund two management contract buyouts, one acquisition, repay existing revolver borrowings and for general corporate purposes. In addition to the corporate family rating, Moody's maintains a B2 rating on NFP's senior secured credit facilities and a Caa2 rating on its senior unsecured notes. The rating outlook for NFP is stable. Ratings Rationale NFP's ratings reflect its expertise and favorable market position in insurance brokerage, particularly providing employee benefit plans to mid-sized businesses. NFP's business is well diversified across products, clients and regions spanning the US and Canada. These strengths are tempered by the company's aggressive financial leverage and moderate interest coverage following a leveraged buyout in July 2013. The rating agency expects that NFP will continue to pursue a combination of organic revenue growth and acquisitions, the latter giving rise to integration and contingent risks. NFP can absorb the incremental borrowing at its current rating level based on its continuing revenue growth and fairly steady EBITDA margins. Giving effect to the proposed borrowing, Moody's estimates that NFP's pro forma debt-to-EBITDA ratio for the 12 months through March 2014 was approximately 8x when excluding the unusually high stock-based compensation expense in 2013. The rating agency views such leverage as aggressive for the rating category, and expects it to decline gradually as NFP increases its EBITDA. NFP's pro forma financing arrangement as of March 31, 2014, included a $135 million senior secured revolving credit facility maturing in 2018 (rated B2, unused after giving effect to repayment), a $940 million senior secured term loan maturing in 2020 (rated B2, includes proposed incremental borrowing of $75 million) and $300 million of senior unsecured notes due in 2021 (rated Caa2). Factors that could lead to an upgrade of NFP's ratings include: (i) debt-to-EBITDA ratio below 5.5x , (ii) (EBITDA-capex) coverage of interest consistently exceeding 2x, and (iii) free-cash-flow- to-debt ratio consistently exceeding 5%. Factors that could lead to a rating downgrade include: (i) debt- to-EBITDA ratio above 8x on a sustained basis, (ii) (EBITDA - capex) coverage of interest below 1.2x, or (iii) free-cash-flow- to-debt ratio below 2%. Giving effect to the proposed incremental borrowing, NFP's ratings (and loss given default (LGD) assessments) are as follows: Corporate family rating B3; Probability of default rating B3-PD; Senior secured revolving credit facility maturing in July 2018 rated B2 (LGD3, 35%); Senior secured term loan maturing in July 2020 rated B2 (LGD3, 35%); Senior unsecured notes due in July 2021 rated Caa2 (LGD5, 88%). The methodologies used in this rating were Global Rating Methodology for Insurance Brokers and Service Companies published in February 2012, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Based in New York City, NFP is a leading provider of benefits, insurance and wealth management services to middle market companies, high net worth individuals and independent financial advisors. The company generated revenue of $1.1 billion for the 12 months through March 2014. NAVISTAR INTERNATIONAL: Appoints SVP and Corporate Controller ------------------------------------------------------------- Navistar International Corporation said that Samara Strycker will join the company on August 4 as senior vice president and corporate controller. Strycker will replace Richard Tarapchak, who is leaving Navistar to pursue other career opportunities after a distinguished 22-year career at the Company. Strycker joins Navistar from GE Healthcare where she most recently served as Americas Regional Controller. Samara joined GE Healthcare in 2008 as global assistant controller following a 15-year career at PricewaterhouseCoopers, LLP. She is a graduate of Syracuse University and a certified public accountant. Tarapchak joined Navistar in 1992 as an associate in the Financial Management Development program and progressed through a number of Finance & Accounting roles of increasing responsibility at the company. Tarapchak served as corporate controller and principal accounting officer for Navistar since 2010. "Rich has been a valuable asset to Navistar and the Finance & Accounting organization for more than 20 years, and we wish him well in his future endeavors," said Walter Borst, executive vice president and chief financial officer. "At the same time, we're proud to add Samara to the team. She is a technically skilled, highly collaborative financial executive who will contribute a wealth of experience and knowledge to Navistar." In connection with Ms. Strycker's appointment as senior vice president and corporate controller, the Company entered into a letter agreement with Ms. Strycker that establishes her compensation. Under this letter agreement, Ms. Strycker is entitled to: (i) a sign on bonus of $175,000, payable in two equal installments to make her whole for the loss of unvested equity and a potential bonus for fiscal 2014 from her prior employer; (ii) a base salary of $325,000; (iii) an annual incentive target opportunity of 55% of her base salary under the Company's annual incentive plan; and (iv) a long-term incentive award and other benefits consistent with those of other Company executives at her level. About Navistar International Navistar International Corporation (NYSE: NAV) -- http://www.Navistar.com/-- is a holding company whose subsidiaries and affiliates subsidiaries produce International(R) brand commercial and military trucks, MaxxForce(R) brand diesel engines, IC Bus(TM) brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse(R) brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The Company also provides truck and diesel engine parts and service. Another affiliate offers financing services. Navistar International reported a net loss attributable to the Company of $898 million for the year ended Oct. 31, 2013, following a net loss attributable to the Company of $3.01 billion for the year ended Oct. 31, 2012. The Company's balance sheet at April 30, 2014, showed $7.72 billion in total assets, $11.79 billion in total liabilities and a $4.07 billion total stockholders' deficit. * * * In the Oct. 9, 2013, edition of the TCR, Moody's Investors Service affirmed the ratings of Navistar International Corporation, including the B3 Corporate Family Rating (CFR). The ratings reflect Moody's expectation that Navistar's successful incorporation of Cummins engines throughout its product line up will enable the company to regain lost market share, and that progress in addressing component failures in 2010 vintage-engines will significantly reduce warranty expenses. As reported by the TCR on Oct. 9, 2013, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Illinois-based truckmaker Navistar International Corp. (NAV) to 'CCC+' from 'B-'. "The rating downgrades reflect our increased skepticism regarding NAV's prospects for achieving the market shares it needs for a successful business turnaround," said credit analyst Sol Samson. In January 2013, Fitch Ratings affirmed the Issuer Default Ratings (IDR) for Navistar International Corporation and Navistar Financial Corporation at 'CCC' and removed the Negative Outlook on the ratings. The removal reflects Fitch's view that immediate concerns about liquidity have lessened, although liquidity remains an important rating consideration as NAV implements its selective catalytic reduction (SCR) engine strategy. Other rating concerns are already incorporated in the 'CCC' rating. NAVISTAR INTERNATIONAL: Amends ABL Credit Agreement with BofA ------------------------------------------------------------- Navistar, Inc., on July 3, 2014, entered into an Amendment No. 2 to (a) the Amended and Restated ABL Credit Agreement, dated as of Aug. 17, 2012, among Navistar, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent, and (b) the Amended and Restated Security Agreement, dated as of Aug. 17, 2012, between the Borrower and the ABL Agent, pursuant to which: (i) the borrowing base was amended to remove used truck inventory; (ii) the calculation of availability was revised to include cash collateral posted to support outstanding designated letters of credit, subject to a $40,000,000 cap; and (iii) the cash management provisions were amended to reflect intercreditor arrangements with respect to a proposed financing with Navistar Financial Corporation secured by a first priority lien on used truck inventory (and certain related assets). In connection with the removal of used truck inventory from the borrowing base, certain adjustments were made to the covenants to reflect that those assets were no longer included in the borrowing base. The ABL amendment also provides for a 1.00% reduction in the amount of the participation fee with respect to designated letters of credit in the event that all outstanding letters of credit are in excess of $50,000,000, that reduction applying only to the portion of designated letters of credit in excess of $50,000,000 for all outstanding letters of credit. The Borrower paid a fee of $175,000 to its asset based lenders in connection with the ABL Amendment. A full-text copy of the Amended ABL Credit Agreement is available for free at http://is.gd/dxHRK8 About Navistar International Navistar International Corporation (NYSE: NAV) -- http://www.Navistar.com/-- is a holding company whose subsidiaries and affiliates subsidiaries produce International(R) brand commercial and military trucks, MaxxForce(R) brand diesel engines, IC Bus(TM) brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse(R) brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The Company also provides truck and diesel engine parts and service. Another affiliate offers financing services. Navistar International reported a net loss attributable to the Company of $898 million for the year ended Oct. 31, 2013, following a net loss attributable to the Company of $3.01 billion for the year ended Oct. 31, 2012. The Company's balance sheet at April 30, 2014, showed $7.72 billion in total assets, $11.79 billion in total liabilities and a $4.07 billion total stockholders' deficit. * * * In the Oct. 9, 2013, edition of the TCR, Moody's Investors Service affirmed the ratings of Navistar International Corporation, including the B3 Corporate Family Rating (CFR). The ratings reflect Moody's expectation that Navistar's successful incorporation of Cummins engines throughout its product line up will enable the company to regain lost market share, and that progress in addressing component failures in 2010 vintage-engines will significantly reduce warranty expenses. As reported by the TCR on Oct. 9, 2013, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Illinois-based truckmaker Navistar International Corp. (NAV) to 'CCC+' from 'B-'. "The rating downgrades reflect our increased skepticism regarding NAV's prospects for achieving the market shares it needs for a successful business turnaround," said credit analyst Sol Samson. In January 2013, Fitch Ratings affirmed the Issuer Default Ratings (IDR) for Navistar International Corporation and Navistar Financial Corporation at 'CCC' and removed the Negative Outlook on the ratings. The removal reflects Fitch's view that immediate concerns about liquidity have lessened, although liquidity remains an important rating consideration as NAV implements its selective catalytic reduction (SCR) engine strategy. Other rating concerns are already incorporated in the 'CCC' rating. NEWLEAD HOLDINGS: Voluntarily Delists Common Shares from NASDAQ --------------------------------------------------------------- The common shares of NewLead Holdings Ltd. were halted from trading on The NASDAQ Stock Market system as a result of a NASDAQ inquiry regarding the Company's efforts to switch transfer agents. Consequently, as a result of the halt, which would have continued through a determination pursuant to the upcoming delisting hearing before a NASDAQ Listing Qualifications Panel, and discussions with the NASDAQ Staff about the likelihood of success at that upcoming hearing, the Company determined to voluntarily delist from NASDAQ and transfer to the over-the-counter market. As a result of its recent trading halts, the Company will be required to have a market maker file an application on Form 15c2-11 with FINRA in order to have its common shares trade on an OTC market other than the Grey Market on which it is currently trading. Once the Form 15c-211 is cleared, the Company hopes to have its shares trade on the OTCQB market. The Company has engaged a market maker to file the necessary application with FINRA. The Company intends to make a further announcement regarding its trading market once the application is cleared. About NewLead Holdings Ltd. Based in Athina, Greece, NewLead Holdings Ltd. -- http://www.newleadholdings.com/-- is an international, vertically integrated shipping company that owns and manages product tankers and dry bulk vessels. NewLead currently controls 22 vessels, including six double-hull product tankers and 16 dry bulk vessels of which two are newbuildings. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. NewLead Holdings reported a net loss of $158.22 million on $7.34 million of operating revenues for the year ended Dec. 31, 2013, as compared with a net loss of $403.92 million on $8.92 million of operating revenues in 2012. The Company's balance sheet at Dec. 31, 2013, showed $151.33 million in total assets, $292.68 million in total liabilities and a $141.34 million total shareholders' deficit. EisnerAmper LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred a net loss, negative operating cash flows, a working capital deficiency, and shareholders' deficiency and has defaulted under its credit facility agreements. Those conditions raise substantial doubt about the Company's ability to continue as a going concern. NORTEL NETWORKS: U.S. Bondholders Agree to $1B Bond Interest Cap ---------------------------------------------------------------- Peg Brickley, writing for Daily Bankruptcy Review, reported that Nortel Networks Corp.'s U.S. division said it has reached a deal with bondholders owed nearly $4 billion to cap the interest they can collect at $1.01 billion. Richard Blackwel, writing for The Globe and Mail, reported that the settlement would see bondholders receive $876 million, plus as much as $134 million more if they have not been repaid by the middle of next year. According to DBR, the proposed settlement was unveiled on the eve of a crucial court hearing at which creditors and officials of the Canadian parent Nortel company are poised to challenge bondholders over the interest calculation. The Globe and Mail said the settlement still has to be approved by the court at a hearing set for mid-September. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation and its various affiliated entities provided next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel did business in more than 150 countries around the world. Nortel Networks Limited was the principal direct operating subsidiary of Nortel Networks Corporation. On Jan. 14, 2009, Nortel Networks Inc.'s ultimate corporate parent Nortel Networks Corporation, NNI's direct corporate parent Nortel Networks Limited and certain of their Canadian affiliates commenced a proceeding with the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (Canada) seeking relief from their creditors. Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. That same day, the Monitor sought recognition of the CCAA Proceedings in U.S. Bankruptcy Court (Bankr. D. Del. Case No. 09-10164) under Chapter 15 of the U.S. Bankruptcy Code. That same day, NNI and certain of its affiliated U.S. entities filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10138). In addition, the High Court of England and Wales placed 19 of NNI's European affiliates into administration under the control of individuals from Ernst & Young LLP. Other Nortel affiliates have commenced and in the future may commence additional creditor protection, insolvency and dissolution proceedings around the world. On May 28, 2009, at the request of administrators, the Commercial Court of Versailles, France, ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in U.S. Bankruptcy Court for recognition of the English Proceedings as foreign main proceedings under Chapter 15. U.S. Bankruptcy Judge Kevin Gross presides over the Chapter 11 and 15 cases. Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as Chapter 15 petitioner's counsel. In the Chapter 11 case, James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as the U.S. Debtors' general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. The United States Trustee appointed an Official Committee of Unsecured Creditors in respect of the U.S. Debtors. An ad hoc group of bondholders also was organized. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. An Official Committee of Retired Employees and the Official Committee of Long-Term Disability Participants tapped Alvarez & Marsal Healthcare Industry Group as financial advisor. The Retiree Committee is represented by McCarter & English LLP as Delaware counsel, and Togut Segal & Segal serves as the Retiree Committee. The Committee retained Alvarez & Marsal Healthcare Industry Group as financial advisor, and Kurtzman Carson Consultants LLC as its communications agent. Several entities, particularly, Nortel Government Solutions Incorporated and Nortel Networks (CALA) Inc., have material operations and are not part of the bankruptcy proceedings. As of Sept. 30, 2008, Nortel Networks Corp. reported consolidated assets of $11.6 billion and consolidated liabilities of $11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNI had assets of about $9 billion and liabilities of $3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about $4.2 billion of unsecured public debt. Since the commencement of the various insolvency proceedings, Nortel has sold its business units and other assets to various purchasers. Nortel has collected roughly $9 billion for distribution to creditors. Of the total, $4.5 billion came from the sale of Nortel's patent portfolio to Rockstar Bidco, a consortium consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited, and Sony Corporation. The consortium defeated a $900 million stalking horse bid by Google Inc. at an auction. The deal closed in July 2011. Nortel has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. Judge Gross and the court in Canada scheduled trials in 2014 on how to divide proceeds among creditors in the U.S., Canada, and Europe. OVERLAND STORAGE: To Offer 1.4MM Shares Under Incentive Plan ------------------------------------------------------------ Overland Storage, Inc., filed with the U.S. Securities and Exchange Commission a Form S-8 registration statement to register 1,400,000 shares of common stock issuable under the Company's 2009 Equity Incentive Plan for a proposed offering price of $6.05 million. A full-text copy of the prospectus is available for free at http://is.gd/FIyh86 About Overland Storage San Diego, Cal.-based Overland Storage, Inc. (Nasdaq: OVRL) -- http://www.overlandstorage.com/-- is a global provider of unified data management and data protection solutions designed to enable small and medium enterprises (SMEs), corporate departments and small and medium businesses (SMBs) to anticipate and respond to change. Overland Storage incurred a net loss of $19.64 million on $48.02 million of net revenue for the fiscal year ended June 30, 2013, as compared with a net loss of $16.16 million on $59.63 million of net revenue during the prior fiscal year. Moss Adams LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2013, citing recurring losses and negative operating cash flows which raise substantial doubt about the Company's ability to continue as a going concern. OVERLAND STORAGE: Files Financial Statements of Tandberg -------------------------------------------------------- Overland Storage, Inc., filed a report on Form 8-K on Jan. 22, 2014, to report the completion of the acquisition of Tandberg Data Holdings S.a r.l., which was consummated on Jan. 21, 2014. Although not required to be filed, the Company filed with the SEC Tandberg's audited financial statements as of, and for the year ended Dec. 31, 2013, a copy of which is available at: http://is.gd/9B3ix5 For the year ended Dec. 31, 2013, Tandberg reported a net loss of $18.47 million on $61.51 million of total net revenue as compared with a net loss of $11.46 million on $67.61 million of total net revenue for the year ended Dec. 31, 2012. As of Dec. 31, 2013, Tandberg had $42.34 million in total assets, $74.31 million in total liabilities and a $31.96 million total deficit. About Overland Storage San Diego, Cal.-based Overland Storage, Inc. (Nasdaq: OVRL) -- http://www.overlandstorage.com/-- is a global provider of unified data management and data protection solutions designed to enable small and medium enterprises (SMEs), corporate departments and small and medium businesses (SMBs) to anticipate and respond to change. Overland Storage incurred a net loss of $19.64 million on $48.02 million of net revenue for the fiscal year ended June 30, 2013, as compared with a net loss of $16.16 million on $59.63 million of net revenue during the prior fiscal year. Moss Adams LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2013, citing recurring losses and negative operating cash flows which raise substantial doubt about the Company's ability to continue as a going concern. OVERSEAS PAN-KOREAN: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Overseas Pan-Korean Center 10527 Belmont Blvd Lorton, VA 22079 Case No.: 14-12789 Chapter 11 Petition Date: July 24, 2014 Court: United States Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Hon. Brian F. Kenney Debtor's Counsel: Weon Geun Kim, Esq. WEON G. KIM LAW OFFICE 8200 Greensboro Drive, Suite 900 McLean, VA 22102 Tel: (571)-278-3728 Fax: (703) 462-5459 Email: jkkchadol99@gmail.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jung Woo Lee, director and president. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. PASCO COUNTY, FL: Moody's Puts Ba3 Bonds Rating on Review --------------------------------------------------------- Moody's Investors Service has placed the Ba3 rating on $0.9 million of outstanding Pasco County (FL) Federal Assistance Housing Inc, Mortgage Revenue Bonds, Series 1979 (Hudson Hills - Section 8) on review for possible downgrade or withdrawal. The action is based on lack of sufficient information necessary to maintain the rating. The bonds are secured by revenues and trustee-held reserve funds from Hudson Hills Manor (the "Project"), a 64-unit multifamily rental property located in Hudson Hills, Pasco County, Florida. The pledged revenues also include payments from a Housing Assistance Payment (HAP) contract with the U.S. Department of Housing and Urban Development (HUD). Though the Project has been receiving discretionary financial support from the Pasco County Housing Authority, the Authority is not legally obligated to cover debt service on the bonds. What could change the rating - UP? -- Several years of substantial growth in debt service coverage ratio -- Sustainable operation, independent of external financial support from the Authority What could change the rating - DOWN? -- Continued decline in debt service coverage ratio -- A significant in average occupancy levels -- An instance of tapping on debt service reserve funds Rating Methodology The principal methodology used in this rating was Global Housing Projects published in July 2010. PEABODY ENERGY: Moody's Lowers Corporate Family Rating to 'Ba3' --------------------------------------------------------------- Moody's downgraded the ratings of Peabody Energy Corporation, including its Corporate Family Rating (CFR) to Ba3 from Ba2; Probability of Default Rating (PDR) to Ba3-PD from Ba2-PD; senior secured ratings to Ba2 from Ba1, senior unsecured rating to Ba3 from Ba2, and the junior subordinate debt rating to B2 from B1. Speculative Grade Liquidity (SGL) rating is affirmed at SGL-2. The outlook is negative. Issuer: Peabody Energy Corporation Downgrades: Probability of Default Rating, Downgraded to Ba3-PD from Ba2-PD Corporate Family Rating, Downgraded to Ba3 from Ba2 Junior Subordinated Conv./Exch. Bond/Debenture Dec 15, 2066, Downgraded to B2 (LGD6) from B1(LGD6) Senior Secured Bank Credit Facility, Downgraded to Ba2 (LGD3) from Ba1(LGD2) Senior Unsecured Regular Bond/Debenture, Downgraded to Ba3(LGD4) from Ba2(LGD4) Outlook Actions: Outlook, Changed To Negative From Stable Affirmations: Speculative Grade Liquidity Rating, Affirmed SGL-2 Ratings Rationale The downgrade reflects the prolonged weak industry conditions for seaborne metallurgical and thermal coal, with little improvement expected over the next 12-18 months, which will especially challenge the company's Australian division. Moody's also expect average realizations in the US to decline in 2014 relative to year prior. Although Moody's expect the company's Western US operations to show improved realizations in 2015, Moody's believe Midwest pricing will remain under pressure as the company's higher priced long-term commitments continue to roll-off. Although Moody's expect the company to undertake cost containment efforts and non-core asset sales to mitigate the impact on leverage and cash flows, credit metrics will continue to deteriorate and remain weak over the next eighteen months. Moody's expect Debt/ EBITDA, as adjusted by Moody's, of roughly 8x in 2014, with no material recovery expected in 2015. Absent meaningful metallurgical coal market recovery, Moody's anticipate negative free cash flows of $350 - $400 million per year, excluding any proceeds from asset sales. Moody's believe that met coal prices will need to recover to the range of $150 - $160 per tonne for Peabody to return to neutral or positive cash flows. The stress to Peabody's metrics is predominantly rooted in the company's Australian platform, which does not utilize long term commitments for most of its production (with most metallurgical coal sales made on spot basis or under quarterly contracts), and has suffered the impact of the low pricing environment in the seaborne metallurgical and thermal markets. While generating almost 40% of the company's revenues, the Australian division generated negligible EBITDA in the first two quarters of 2014. Meanwhile, the third quarter benchmark price for high quality coking coal settled at a level identical to the second quarter, $120 per metric tonne. Already at a six year low (and steeply below the $160 average price in 2013 and the $145 benchmark for the first quarter), metallurgical coal prices look set for a prolonged pricing trough. While Moody's expect that production cuts should bring prices closer to $140 per tonne by the end of 2015, Moody's don't anticipate sustained or substantial recovery beyond these levels for the next few years, due to additional supplies coming online globally. Moody's also expect take-or-pay transportation contracts in Australia will continue to delay production cuts, which will contribute to the softness in prices. Peabody in particular has substantial take-or-pay rail and port arrangements, predominately in Australia, totaling $3.7 billion, with terms ranging up to 26 years and near-term annual commitments of $350 -- 400 million. The Ba3 corporate family rating reflects Peabody's significant size and scale, broadly diversified reserves and production base, efficient surface mining operations, and a solid portfolio of long-term coal supply agreements with electric utilities. The rating also reflects its competitive cost structure compared to other US-based producers and organic growth opportunities. Challenges for the rating include regulatory and other pressures facing the US coal industry, volatility of the company's Australian operations due to its exposure to metallurgical coal, foreign currency fluctuations, and operational risks inherent in the coal industry. The company's Speculative Grade Liquidity Rating of SGL-2 reflects Peabody's cash on hand and substantial revolver capacity. At June 30, 2014, Peabody had almost $500 million in cash and cash equivalents, and almost full availability of its $1.65 billion revolving credit facility, which matures in 2018. Peabody's next significant maturity will be $650 million in senior notes coming due in 2016. Moody's expect Peabody to be in compliance with the covenants under its secured credit facility. Peabody has several alternatives for arranging back-door liquidity if necessary. Peabody's large number of mines and its operational diversity across the PRB and Illinois Basin give it the flexibility to sell non-core assets if necessary. The negative outlook reflects Moody's expectation that any material recovery in metallurgical coal markets is at least eighteen months away, with Peabody's as-adjusted Debt/ EBITDA approaching 8x. While Moody's anticipate that management will continue cost containment efforts and initiate asset sales to mitigate the impact on cash flows, the negative outlook reflects Moody's expectation that the company is likely to burn cash over the next eighteen months. Although an upgrade is unlikely in the near term, the outlook could be stabilized if the company was expected to remain cash flow neutral and Debt/ EBITDA, as adjusted, was expected to trend towards 4x. A downgrade would be considered if Peabody's liquidity position deteriorated, free cash flows were persistently negative, debt capitalization ratio was expected to persistently track above 65%, and/or Debt/ EBITDA, as adjusted, was not expected to track towards 5x over the next two to three years. The principal methodology used in this rating was the Global Mining Industry published in May 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Peabody Energy Corporation is the world's largest private sector coal company with 28 coal mining operations in the US and Australia and over 8 billion tons of proven and probable reserves. For the twelve months ended June 30, 2014, the company sold 257 million tons of coal and generated $6.9 billion in revenues. PENINSULA HOSPITAL: Second Amended Motion to Hire BDO USA Approved ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of New York approved the second supplemental application of the Chapter 11 Trustee for the estates of Peninsula Hospital Center and Peninsula General Nursing Home Corp., dba Peninsula Center for Extended Care & Rehabilitation, to amend employment and retention of BDO USA, LLP as auditor for the Trustee. BDO will provide, inter alia, the following services to the Trustee and the Debtors' estates: (a) audit the financial statements of the Tax Deferred Retirement Plan for Employees of PHC for the year ended Dec. 31, 2013; and (b) audit the financial statements of the Tax Deferred Retirement Plan for Employees of PHC for the year ended Dec. 31, 2014. The Trustee seeks to retain BDO on a fixed-fee basis. For auditing financial statements of the Tax Deferred Retirement Plan of Employees of Peninsula Hospital Center for the year ended Dec. 31, 2013, the fee will be $20,000. For auditing financial statements of the Tax Deferred Retirement Plan for Employees of Peninsula Hospital Center for the year ended Dec. 31, 2014, the fee will be $20,000. BDO will also be reimbursed for reasonable out-of-pocket expenses incurred. Adam Cole, a partner of 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: Adam Cole BDO USA, LLP 100 Park Avenue New York, NY 10017 Tel: (212) 885-8327 E-mail: acole@bdo.com About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody served as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. In April 2013, the bankruptcy court discharged Daniel T. McMurray from his duties and responsibilities as patient care ombudsman. Richard J. McCord, Esq., was appointed by the Court as examiner in the Debtors' cases. His task was to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. Mr. McCord's own firm, Certilman Balin, & Hyman, LLP, served as the Examiner's counsel. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. Robert M. Hirsh, Esq., at Arent Fox LLP, in New York, N.Y., represents the Committee as counsel. At the behest of the U.S. Trustee, Lori Lapin Jones, Esq. was named Chapter 11 Trustee in March 2012, replacing Todd Miller, the Debtors' Chief Executive Officer. The Chapter 11 trustee is represented by LaMonica Herbst & Maniscalco LLP as her counsel. Storch Amini & Munves, PC, serves as the Chapter 11 Trustee's special counsel in connection with her investigation of the Debtors. She obtained approval to employ Garfunkel Wild, P.C., as her special health care, regulatory, corporate, finance and litigation counsel; and Foy Advisors LLC as consultant. PLUG POWER: Two Directors Elected at Annual Meeting --------------------------------------------------- At Plug Power Inc.'s 2014 annual meeting held on July 23, the Company's stockholders: 1. elected Larry G. Garberding and Douglas T. Hickey as directors each to hold office until the Company's 2017 annual meeting of stockholders and until such director's successor is duly elected and qualified or until such director's earlier resignation or removal; 2. approved an amendment and restatement of the 2011 Plan to increase the number of shares of the Company's common stock authorized for issuance under that plan from 6,500,000 shares to 17,000,000 shares; 3. approved the Third Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company to increase the number of authorized shares of the Company's common stock by 205,000,000 shares; 4. approved an advisory resolution regarding the compensation of the Company's named executive officers; and 5. ratified KPMG LLP as the Company's independent auditors for 2014. On July 25, 2014, the Company filed a Third Certificate of Amendment to its Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware. The Amendment increases the number of authorized shares of common stock, par value $0.01 per share, from 245,000,000 shares to 450,000,000 shares. After giving effect to the Amendment, the authorized capital stock of the Company consists of 450,000,000 shares of Common Stock and 5,000,000 shares of undesignated preferred stock, par value $0.01 per share. About Plug Power Plug Power Inc. is a provider of alternative energy technology focused on the design, development, commercialization and manufacture of fuel cell systems for the industrial off-road (forklift or material handling) market. Plug Power reported a net loss attributable to common shareholders of $62.79 million on $26.60 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss attributable to common shareholders of $31.86 million on $26.10 million of total revenue during the prior year. The Company's balance sheet at March 31, 2014, showed $95.20 million in total assets, $46.85 million in total liabilities, $2.37 million in redeemable preferred stock and $45.97 million in total stockholders' equity. Bankruptcy Warning "Our cash requirements relate primarily to working capital needed to operate and grow our business, including funding operating expenses, growth in inventory to support both shipments of new units and servicing the installed base, funding the growth in our GenKey "turn-key" solution which also includes the installation of our customer's hydrogen infrastructure as well as delivery of the hydrogen molecule, and continued development and expansion of our products. Our ability to achieve profitability and meet future liquidity needs and capital requirements will depend upon numerous factors, including the timing and quantity of product orders and shipments; the timing and amount of our operating expenses; the timing and costs of working capital needs; the timing and costs of building a sales base; the timing and costs of developing marketing and distribution channels; the timing and costs of product service requirements; the timing and costs of hiring and training product staff; the extent to which our products gain market acceptance; the timing and costs of product development and introductions; the extent of our ongoing and any new research and development programs; and changes in our strategy or our planned activities. If we are unable to fund our operations, we may be required to delay, reduce and/or cease our operations and/or seek bankruptcy protection," the Company said the Report. PRECISION OPTICS: MHW Partners Holds 5.6% Equity Stake ------------------------------------------------------ In a Schedule 13D filed with the U.S. Securities and Exchange Commission, MHW Partners, L.P., and its affiliates disclosed that as of July 14, 2014, they beneficially owned 347,223 shares of common stock of Precision Optics Corporation, Inc., representing 5.6 percent of the shares outstanding. A full-text copy of the regulatory filing is available at http://is.gd/cZ2NLZ About Precision Optics Headquartered in Gardner, Massachusetts, Precision Optics Corporation, Inc., has been a developer and manufacturer of advanced optical instruments since 1982. The Company designs and produces high-quality micro-optics, medical instruments and other advanced optical systems. The Company's medical instrumentation line includes laparoscopes, arthroscopes and endocouplers and a world-class product line of 3-D endoscopes for use in minimally invasive surgical procedures. Precision Optics reported a net loss of $1.78 million for the year ended June 30, 2013, as compared with net income of $960,972 for the year ended June 30, 2012. The Company's balance sheet at March 31, 2014, showed $1.89 million in total assets, $919,074 in total liabilities, all current, and $975,505 in total stockholders' equity. PREFERRED SANDS: K.K.R. Provides Financing ------------------------------------------ William Alden, writing for The New York Times' DealBook, reported that private equity giant Kohlberg Kravis Roberts said it would provide $680 million of financing to Preferred Sands, a company that had been on the verge of bankruptcy. According to the report, the deal, with capital primarily from K.K.R.'s special situations fund, is the largest private rescue the company has made in the United States. Preferred Sands, which makes sand used in hydraulic fracturing, fell on hard times as natural gas prices dropped in 2012 and 2013 and exploration companies drilled fewer wells, the DealBook related. As earnings fell, the company violated debt covenants that required it to maintain a certain level of financial health, the report further related. * * * The Troubled Company Reporter, on Nov. 25, 2011, reported that Standard & Poor's Ratings Services assigned its preliminary 'B+' corporate credit rating to Radnor, Pa.-based Preferred Sands Holding Co. LLC and Preferred Resin Holding Co. LLC (collectively referred to as Preferred Sands). The rating outlook is stable. QBS HOLDING: Moody's Assigns 'B2' Corporate Family Rating --------------------------------------------------------- Moody's Investors Service assigned a B2 Corporate Family Rating ("CFR") and a B3-PD Probability of Default rating to QBS Holding Company, Inc., which operates under the name Quorum Business Solutions, Inc. The ratings have been assigned in connection with the acquisition of Quorum by funds advised by Silver Lake Partners and Silver Lake Kraftwerk ("the sponsors") for approximately $334 million, including fees and other transaction-related considerations. Moody's also assigned a B2-LGD3 rating to both a proposed $15 million senior secured revolving credit facility expiring in 2019 and a $125 million senior secured term loan B maturing in 2021. The ratings outlook is stable. Ratings Rationale Despite the strength of Quorum's product offerings to a dedicated customer base operating in an industry that is experiencing dramatic change and growth, Moody's believes that Quorum's very small scale partly offsets those positive fundamentals, positioning the company somewhat weakly at a B2 rating. The CFR also takes into account the moderately high, roughly 5.5 times debt-to-EBITDA leverage Quorum will operate under during the first few quarters of operation under its new sponsors, who, significantly, are contributing equity representing 63% of the company's total capitalization. Moody's also believes Quorum's strong recent gains in new client software installations, combined with rapid energy sector growth, will drive low-double-digit organic revenue increases that, in turn, will help Quorum to deleverage gradually. Moody's expects that Quorum, by next year, will generate free cash flows representing mid- to high-single-digit percentages of total debt, and interest coverage of near 3.0 times, both solid measures for a B2 rating. Moody's considers Quorum's liquidity good, by virtue of Moody's expectations for annual free cash flows approaching $10 million in the intermediate term and an undrawn revolving credit facility. The stable outlook reflects Quorum's good revenue growth prospects, steadily improving profitability as it benefits from scale, and ample opportunities for software companies to provide ERP solutions to the energy sector, which has historically underinvested in IT services. Moody's could upgrade the ratings if both revenue and EBITDA reach or exceed expectations such that total debt to EBITDA remains below 4.5 times and free-cash-flow-to-total-debt exceeds 10% on a sustained basis. Moody's could downgrade the ratings if revenue growth falls off considerably, reflective, perhaps, of the loss of a large customer or customers, leading Moody's to expect growth prospects will remain pressured over a protracted period. The ratings could also be downgraded if total debt-to-EBITDA remains above 5.75 times for an extended period of time and if free cash flow falls close to breakeven. Issuer: QBS Holding Company, Inc. Assignments: Corporate Family Rating, Assigned B2 Probability of Default Rating, Assigned B3-PD Senior Secured Revolving Credit Facility due 2019, Assigned B2, LGD3 Senior Secured Term Loan B due 2021, Assigned B2, LGD3 The principal methodology used in this rating was Global Software Industry published in October 2012. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Houston, Texas, Quorum is a software development and consulting company that designs, develops, implements, and supports business software solutions to companies in the North American energy industry. Moody's estimates that Quorum's 2014 revenues will be at least $90 million. QUANTUM CORP: Incurs $4.3 Million Net Loss in Fiscal 1st Quarter ---------------------------------------------------------------- Quantum Corp. reported a net loss of $4.32 million on $128.12 million of total revenue for the three months ended June 30, 2014, as compared with net income of $3.28 million on $147.84 million of total revenue for the same period last year. As of June 30, 2014, the Company had $351.21 million in total assets, $439.81 million in total liabilities and a $88.59 million stockholders' deficit. "Our strong first quarter results reflect the adjustments in our business model and other strategic actions we've taken over the past five quarters to drive shareholder value by generating increased profit and cash flow while positioning the company to deliver overall revenue growth," said Jon Gacek, president and CEO of Quantum. "These results also demonstrate the market traction we're seeing from our continued focus on technology and product innovation. We had strong revenue momentum at quarter end, particularly related to our scale-out storage solutions and DXi appliances, and this momentum has carried over into the current quarter." A full-text copy of the press release is available for free at: http://is.gd/ooGhJ0 About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. Quantum Corporation incurred a net loss of $21.47 million on $553.16 million of total revenue for the year ended March 31, 2014, as compared with a net loss of $52.17 million on $587.43 million of total revenue for the year ended March 31, 2013. RADIO DESIGN: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Radio Design Group, Inc. 8925 Rogue River Hwy Grants Pass, OR 97527 Case No.: 14-62732 Chapter 11 Petition Date: July 24, 2014 Court: United States Bankruptcy Court District of Oregon Judge: Hon. Frank R Alley III Debtor's Counsel: Julia I Manela, Esq. THE SCOTT LAW GROUP 497 Oakway Rd #245 Eugene, OR 97401 Tel: (541) 868-8005 Email: ecf@scott-law-group.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Alan Young, chief operating officer. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/orb14-62732.pdf RADIOSHACK CORP: Fails to Comply with NYSE's $1 Bid Price Rule -------------------------------------------------------------- RadioShack Corporation received a continued listing standards notice from the New York Stock Exchange on July 24, 2014, because the average closing price of the Company's common stock had fallen below $1.00 per share over a period of 30 consecutive trading days. The Company's common stock continues to trade on the NYSE. Under NYSE rules, the Company has six months following receipt of the notification to regain compliance with the minimum share price requirement. The Company can regain compliance during the six- month cure period if the Company's common stock has a closing share price of at least $1.00 on the last trading day of any calendar month during the period and also has an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month or on the last day of the cure period. The Company intends to notify the NYSE that it intends to cure the issue and regain compliance. The Company's Securities and Exchange Commission reporting requirements and debt obligations are not affected by the receipt of the NYSE notification. About Radioshack Corporation RadioShack (NYSE: RSH) -- -- http://www.radioshackcorporation.com -- is a national retailer of innovative mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack's retail network includes more than 4,300 company-operated stores in the United States, 270 company-operated stores in Mexico, and approximately 1,000 dealer and other outlets worldwide. Radioshack reported a net loss of $400.2 million in 2013, a net loss of $139.4 million in 2012, and net income of $72.2 million in 2011. As of May 3, 2014, Radioshack had $1.32 billion in total assets, $1.25 billion in total liabilities and $72.6 million in total stockholders' equity. * * * As reported by the TCR on June 18, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on the Fort Worth, Texas-based RadioShack Corp. to 'CCC' from 'CCC+'. "The downgrade reflects the company's very weak operating trends, which have led to significant liquidity usage. Even if performance trends moderate, we expect the company to be using cash over the near term," said credit analyst Charles Pinson-Rose. In the Dec. 30, 2013, edition of the TCR, Fitch Ratings has affirmed its 'CCC' Long-term Issuer Default Rating (IDR) on RadioShack Corporation. The IDR reflects the significant decline in RadioShack's profitability and cash flow, which has become progressively more pronounced over the past two years. The TCR reported on March 13, 2014, that Moody's Investors Service downgraded RadioShack Corporation's corporate family rating to Caa2 from Caa1. "The continuing negative trend in RadioShack's sales and margins has resulted in a precipitous drop in profitability causing continued deterioration in credit metrics and liquidity," Mickey Chadha, Senior Analyst at Moody's said. Troubled Company Reporter, citing The Wall Street Journal, reported on March 5, 2014, that RadioShack plans to cut back its store count, after a sharp drop in sales over the holidays left it with a $400 million loss in 2013. The electronics retailer said it could close as many as 1,100 U.S. stores -- one out of every four that it operates itself -- underscoring the difficulty it has had adapting to a fast changing consumer landscape. REGENT PURCHASER: Moody's Rates $130MM 2nd Lien Term Loan 'Caa1' ---------------------------------------------------------------- Moody's Investors Service assigned a B2 Corporate Family Rating (CFR) to Regent Purchaser Investments Inc. (RGL), a B1 rating to its proposed first lien US$75 million revolver and US$305 million term loan, and a Caa1 rating to the second lien US$130 million term loan. Moody's also assigned a B2-PD Probability of Default Rating and a SGL-2 Speculative Grade Liquidity rating. The rating outlook is stable. This is the first time that Moody's has rated RGL. The proceeds of the term loans will be used to partially finance the C$775 million acquisition of RGL by Advent International Corporation, a private equity firm. Assignments: Issuer: Regent Purchaser Investments Inc. Probability of Default Rating, Assigned B2-PD Speculative Grade Liquidity Rating, Assigned SGL-2 Corporate Family Rating, Assigned B2 Senior Secured Bank Credit Facility, Assigned B1(LGD3) Senior Secured Bank Credit Facility, Assigned Caa1(LGD5) Ratings Rationale The B2 Corporate Family Rating (CFR) reflects RGL's high leverage (6.5X adj. debt/EBITDA), concentration in one market (Canadian bitumen and heavy oil), limited product mix (slotted and seamed liners), and small size (C$70 million EBITDA). The rating favorably considers the positive free cash flow generation of the business with expected debt reduction and deleveraging, a diverse and high quality customer base, high barriers to entry with patents and long standing relationships with mostly blue chip customers, and strong margins as the liners are a critical component of bitumen and heavy oil production. RGL's SGL-2 speculative grade liquidity rating reflects good liquidity. Moody's expect positive free cash flow of about C$35 million from September 30, 2014 to December 31, 2015 and for the company to have full availability under its US$75 million revolving credit facility. The revolver contains a springing covenant (1st Lien Debt > 6.5x), which is tested upon 35% revolver utilization. Moody's expect RGL to be well in compliance with the covenant. Alternate sources of liquidity are limited as its assets are pledged as collateral to the secured credit facilities and as RGL has a very small asset base. Under Moody's Loss Given Default (LGD) Methodology, the US$75 million revolving credit facility and the US$305 million first lien term loan are rated B1, one notch above the CFR, as the lower ranking US$130 million second lien term loan provides cushion. The second lien term loan is rated Caa1. The stable outlook reflects Moody's expectation that EBITDA will grow as Canadian SAGD development continues, leverage will improve to a level consistent with the B2 CFR and RGL will maintain good liquidity over the next few years. The rating could be raised if RGL exhibits positive EBITDA growth, while maintaining its strong market position with debt to EBITDA improving towards 3.5x. The rating could be lowered if RGL's market position weakened, if EBITDA declined, or if leverage was likely to remain above 5.5x. The principal methodology used in this rating was the Global Oilfield Services Rating Methodology published in December 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. RGL is a privately owned, sand control oil field services company based in Leduc, Alberta. RGL primarily serves Canadian bitumen and heavy oil producers by supplying them with slotted and seamed liners. REMEDENT INC: Vandelanotte Raises Going Concern Doubt ----------------------------------------------------- Remedent, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended March 31, 2014. Vandelanotte Bedrijfsrevisoren CVBA expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has a history of losses; during the year ended March 31, 2014, the Company could show a net profit of $524,508, but nevertheless incurred an operating loss of $767,279; also as of that date, the Company's current liabilities exceeded its current assets by $408,931. The Company also experienced cash outflows from operating activities during the year ending March 31, 2014 totaling $103,939 and had cash on hand at March 31, 2014 of $775,286. Also, the reimbursement schedule for a long term debt commitment has not been complied with. The Company reported net income of $524,508 on $2.59 million of net sales for the fiscal year ended March 31, 2014, compared with a net loss of $981,936 on $2.94 million of net sales last year. The Company's balance sheet at March 31, 2014, showed $6.17 million in total assets, $3.85 million in total liabilities, and stockholders' equity of $2.32 million. A copy of the Form 10-K is available at: http://is.gd/bkY7IA Remedent, Inc., is a manufacturer of cosmetic dentistry products headquartered in Ghent, Belgium. The Company is engaged in the research, development and manufacturing of oral care and cosmetic dentistry products that are distributed in Europe, Asia and the United States. RICEBRAN TECHNOLOGIES: Baruch Halpern Holds 9.2% Equity Stake ------------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Baruch Halpern disclosed that as of May 30, 2014, he beneficially owned 721,001 shares of common stock of Ricebran Technologies representing 9.16 percent of the shares outstanding. Mr. Halpern is a financial advisor who works with RiceBran through Halpern Capital, Inc. Halpern Capital, Inc., has an agreement with RiceBran under which Halpern Capital may receive between 2.5% and 5%, depending on the type of security offering, of cash consideration for security offerings Halpern Capital arranges for RiceBran. A full-text copy of the regulatory filing is available for free at http://is.gd/fIMCNl About RiceBran Scottsdale, Ariz.-based RiceBran Technologies, a California corporation, is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. RiceBran Technologies reported a net loss of $17.64 million on $35.05 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $11.13 million on $37.72 million of revenues for the year ended Dec. 31, 2012. As of March 31, 2014, the Company had $52.66 million in total assets, $40.78 million in total liabilities, $6.42 million in temporary equity and $5.44 million in total equity attributable to the Company shareholders. BDO USA, LLP, in Phoenix, Arizona, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations resulting in an accumulated deficit of $219 million at Dec. 31, 2013. This factor among other things, raises substantial doubt about its ability to continue as a going concern. RICEBRAN TECHNOLOGIES: Shoshana Halpern Reports 7.8% Stake ---------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Shoshana Halpern disclosed that as of May 30, 2014, she beneficially owned 614,037 shares of common stock of Ricebran Technologies representing 7.81 percent of the shares outstanding. A full-text copy of the regulatory filing is available for free at http://is.gd/DH0QGR About RiceBran Scottsdale, Ariz.-based RiceBran Technologies, a California corporation, is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. RiceBran Technologies reported a net loss of $17.64 million on $35.05 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $11.13 million on $37.72 million of revenues for the year ended Dec. 31, 2012. As of March 31, 2014, the Company had $52.66 million in total assets, $40.78 million in total liabilities, $6.42 million in temporary equity and $5.44 million in total equity attributable to the Company shareholders. BDO USA, LLP, in Phoenix, Arizona, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations resulting in an accumulated deficit of $219 million at Dec. 31, 2013. This factor among other things, raises substantial doubt about its ability to continue as a going concern. SINCLAIR BROADCAST: Roystone Capital Holds 5.3% of Class A Shares ----------------------------------------------------------------- In a Schedule 13G filed with the U.S. Securities and Exchange Commission, Roystone Capital Management LP and its affiliates disclosed that as of July 17, 2014, they beneficially owned 3,782,800 shares of Class A common stock, $.01 par value, of Sinclair Broadcast Group, Inc., representing 5.3 percent of the shares outstanding. A full-text copy of the regulatory filing is available for free at http://is.gd/uB6Uv3 About Sinclair Broadcast Based in Baltimore, Maryland, Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) -- http://www.sbgi.net/-- one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches roughly 22 percent of U.S. television households and includes FOX, ABC, CBS, NBC, MNT, and CW affiliates. Sinclair Broadcast reported net income of $75.81 million in 2013, as compared with net income of $144.95 million in 2012. The Company's balance sheet at Dec. 31, 2013, showed $4.14 billion in total assets, $3.74 billion in total liabilities and $405.70 million in total equity. * * * As reported by the TCR on Feb. 24, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on Sinclair to 'BB-' from 'B+'. The rating outlook is stable. "The 'BB-' rating on Sinclair reflects S&P's expectation that the company could keep its lease-adjusted debt to EBITDA below historical levels throughout the election cycle, absent a reversal of economic growth, meaningful debt-financed acquisitions, or significant shareholder-favoring measures," explained Standard & Poor's credit analyst Deborah Kinzer. In September 2010, Moody's raised its ratings for Sinclair Broadcast and subsidiary Sinclair Television Group, including the Corporate Family Rating and Probability-of-Default Rating, each to Ba3 from B1, and the ratings for individual debt instruments. Moody's also assigned a B2 (LGD 5, 87%) rating to the proposed $250 million issuance of Senior Unsecured Notes due 2018 by STG. The Speculative Grade Liquidity Rating remains unchanged at SGL-2. The rating outlook is now stable. SJC INC: Meeting to Form Creditors' Panel Set for July 31 --------------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on July 31, 2014, at 10:00 a.m. in the bankruptcy case of SJC Inc. The meeting will be held at: J. Caleb Boggs Federal Building 844 King St., Room 5209 Wilmington, DE 19801 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. TEM ENTERPRISES: Hires McDonald Carano as Bankruptcy Counsel ------------------------------------------------------------ TEM Enterprises asks permission from the U.S. Bankruptcy Court for the District of Nevada to employ McDonald Carano Wilson LLP as bankruptcy counsel, nunc pro tunc to June 4, 2014 petition date. The Debtor requires McDonald Carano to: (a) provide legal advice and assistance to the Debtor relative to the administration of the case; (b) represent the Debtor at hearings held before the Court and communicate with the Debtor regarding issues raised, as well as the decisions of the Court; (c) assist and advise the Debtor in its examination and analysis of the conduct of the Debtor's affairs and the reasons for this chapter 11 filing; (d) review and analyze all applications, motions, orders, statements of operations and schedules filed with the Court by the Debtor or third parties, advise the Debtor as to the propriety, and, after consultation with the Debtor, take appropriate action; (e) assist the Debtor in preparing applications, motions and orders in support of positions taken by the Debtor, as well as prepare witnesses and review documents in this regard; (f) apprise the Court of the Debtor's analysis of their operations; (g) confer with the accountants and any other professionals retained by the Debtor, if any are selected and approved, so as to advise the Debtor and the Court more fully of the Debtor's operations; (h) assist the Debtor in its negotiations with creditors and other parties-in-interest; (i) assist the Debtor in preparing and confirming a plan of reorganization proposed by the Debtor or other parties-in- interest and advise as to whether it is in the best interest of creditors and is feasible; (j) assist the Debtor with such other services as may contribute to the confirmation of a plan of reorganization; (k) advise and assist the Debtor in evaluating and prosecuting any claims that the Debtor may have against third parties and others; and (l) assist the Debtor in performing such other services as may be in the interest of creditors, the Debtor and the Debtor's estate. McDonald Carano will be paid at these hourly rates: Kaaran E. Thomas, Of Counsel $500 Ryan J. Works, Partner $375 Kristen T. Gallagher, Partner $350 Amanda M. Perach, Associate $275 Brian Grubb, Paralegal $200 McDonald Carano will also be reimbursed for reasonable out-of- pocket expenses incurred. Ryan J. Works, partner of McDonald Carano, 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. McDonald Carano can be reached at: Ryan J. Works, Esq. MCDONALD CARANO WILSON LLP 2300 West Sahara Ave., Suite 1200 Las Vegas, NV 89102 Tel: (702) 873-4100 Fax: (702) 873-9966 E-mail: rworks@mcdonaldcarano.com About Tem Enterprises Tem Enterprises dba Xtra Airways filed a Chapter 11 bankruptcy petition (Bankr. D. Nev. Case No. 14-13955) on June 4, 2014. Judge August B. Landis oversees the case. The Debtor disclosed $6,129,714 in assets and $18,386,432 in liabilities as of the Chapter 11 filing. Lisa Dunn signed the petition as president. McDonald Carano Wilson LLP serves as the Debtor's counsel. TRAVELPORT LIMITED: Unit to Sell 34 Million Shares of Orbitz ------------------------------------------------------------ A subsidiary of Travelport Limited entered into an underwriting agreement to sell 34 million shares of common stock of Orbitz Worldwide, Inc., in an underwritten public offering for approximately $280 million before expenses. The underwriters have a 30 day option to purchase up to an additional 5 million shares from the Selling Stockholder. Orbitz Worldwide will not receive any proceeds from the offering. The closing of the sale of the shares is expected to take place on July 22, 2014, subject to customary closing conditions. Credit Suisse Securities (USA) LLC is serving as the sole book- running manager. The offering of securities is made only by means of a written prospectus and related prospectus supplement, which together will form a part of Orbitz Worldwide's effective registration statement. The prospectus and prospectus supplement relating to the offering will be filed with the U.S. Securities and Exchange Commission and will be available on the SEC's Web site at www.sec.gov. Alternatively, when available, copies of the prospectus and prospectus supplement relating to this offering may be obtained from Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, or by calling 800-221-1037 or by emailing a request to newyork.prospectus@credit-suisse.com. About Travelport Holdings Headquartered in Atlanta, Georgia, Travelport provides transaction processing services to the travel industry through its global distribution system business, which includes the group's airline information technology solutions business. During FYE2011, the group reported revenues and adjusted EBITDA of US$2 billion and US$507 million, respectively. For the year ended Dec. 31, 2013, the Company reported a net loss attributable to the Company of $192 million on $2.07 billion of net revenue as compared with a net loss attributable to the Company of $236 million on $2 billion of net revenue in 2012. The Company's balance sheet at Dec. 31, 2013, showed $3.08 billion in total assets, $4.39 billion in total liabilities and a $1.31 billion total deficit. * * * As reported by the TCR on May 1, 2013, Standard & Poor's Ratings Services said that it raised its long-term corporate credit ratings on Travelport Holdings Ltd. and indirect primary operating subsidiary Travelport LLC (together, Travelport) to 'CCC+' from 'SD' (selective default). The rating action follows S&P's review of Travelport's business and financial risk profiles after it downgraded the group to 'SD' on April 16, 2013. TRULAND GROUP: Shuts Down, Will Liquidate in Bankruptcy ------------------------------------------------------- Tom Corrigan, writing for Daily Bankruptcy Review, reported that Truland Group Inc., which designs and installs electrical infrastructure, has filed for Chapter 7 bankruptcy after halting its operations. UNITED AIRLINES: Moody's Rates $500MM Incremental Loan 'Ba2' ------------------------------------------------------------ Moody's Investors Service assigned a Ba2 rating to the $500 million incremental term loan facility due 2021 that United Airlines, Inc. ("United") announced it plans to arrange. The Corporate Family rating of UAL is B2. The rating outlook is positive. Ratings Rationale United's parent, United Continental Holdings, Inc. ("UAL") will guarantee the new term loan, as it does United's existing senior secured credit facilities: a $900 million term loan and $1.0 billion revolving credit. The revolving credit will be upsized to $1.35 billion as part of the add-on term loan transaction. The existing term loan matures on April 1, 2019 and the maturity of the revolving credit is being extended to January 2, 2019. The rating of these credit facilities is also Ba2. United will use the proceeds of the add-on term loan for general corporate purposes, including to help fund the early retirement of its $800 million of 6.75% senior secured notes due September 15, 2015. Moody's expects these new credit facilities to close and the payoff of the 6.75% notes to occur before the end of September 2014. Moody's will withdraw the Ba2 rating on this issue of secured notes once they are repaid. The B2 Corporate Family rating considers UAL's good liquidity, leading market position and credit metrics that remain somewhat weak relative to the cross-industry medians for the B2 rating category. The ratings anticipate that UAL will sustain good liquidity notwithstanding expected negative free cash flow generation in at least the next two years because of higher capital expenditures for new aircraft and other capital investments while it pursues stronger traffic performance and yields. The stable outlook reflects Moody's anticipation of about steady traffic and operating performance in upcoming quarters as the company focuses on completing the integration of its work groups under unified labor contracts. The large cash balance provides sufficient cushion to fund upcoming debt maturities and other potential calls on cash in the event cash flow from operations was to unexpectedly decline. Upwards pressure on the ratings could occur if the company is able to improve its unit revenues and demonstrate the ability to limit growth in non-fuel unit costs such that a positive trend of operating profit and operating cash flow is sustained. Stronger credit metrics such as Funds from operations + interest to interest of about 3.0 times, Debt to EBITDA of below 5.5 times and or Free Cash Flow to Debt of at least 4% could also positively pressure the ratings. The ratings could face downwards pressure if the company is unable to maintain its EBIT margin above 5% while its cost of jet fuel surpassed $3.40 per gallon or if aggregate liquidity including cash and availability on revolving credit facilities was sustained below $4.0 billion. Sustained negative free cash flow generation, Debt to EBITDA of more than 7.0 times or Funds from operations + interest to interest of below 2.0 times could also lead to a negative rating action. United Continental Holdings, Inc. (NYSE: UAL) is the holding company for United Airlines. UAL's airline operating companies operate an average of more than 5,200 flights a day to 374 airports across six continents from their hubs in Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, D.C. Assignments: Issuer: United Airlines, Inc. Senior Secured Bank Credit Facility, Assigned Ba2, LGD2, 19 % The principal methodology used in this rating was Global Passenger Airlines published in May 2012. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. UNI-PIXEL INC: To Hold Call on 2nd Quarter Results Aug. 7 --------------------------------------------------------- UniPixel, Inc., will hold a conference call on Thursday, Aug. 7, 2014, at 4:30 p.m. Eastern time to discuss the second quarter ended June 30, 2014. Financial results will be issued in a press release prior to the call. UniPixel management will host the presentation, followed by a question and answer period. The call will be webcast live here, as well as via a link in the Investors section of the company's Web site at www.unipixel.com/investors. Webcast participants will be able to submit a question to management via the webcast player. Date: Thursday, August 7, 2014 Time: 4:30 p.m. Eastern time (3:30 p.m. Central time) Webcast: http://public.viavid.com/index.php?id=110260 To participate in the conference call via telephone, dial 1-913- 981-5588 and provide the conference name or conference ID 1760033. Please call the conference telephone number 5-10 minutes prior to the start time so the operator can register your name and organization. If you have any difficulty with the webcast or connecting to the call, please contact Liolios Group at 1-949-574-3860. A replay of the call will be available after 7:30 p.m. Eastern time on the same day through Sept. 7, 2014, via the same link above, or by dialing 1-858-384-5517 and entering replay ID 1760033. About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. Uni-Pixel reported a net loss of $15.18 million in 2013, a net loss of $9.01 million in 2012 and a net loss of $8.56 million in 2011. The Company's balance sheet at March 31, 2014, showed $49.38 million in total assets, $5.50 million in total liabilities and $43.87 million in total shareholders' equity. USG CORP: Posts $57 Million Net Income in Second Quarter -------------------------------------------------------- USG Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $57 million on $948 million of net sales for the three months ended June 30, 2014, as compared with net income of $25 million on $916 million of net sales for the same period last year. For the six months ended June 30, 2014, the Company reported net income of $102 million on $1.79 billion of net sales as compared with net income of $27 million on $1.73 billion of net sales for the same period in 2013. As of June 30, 2014, USG Corporation had $4.15 billion in total assets, $3.33 billion in total liabilities and $814 million in total stockholders' equity including noncontrolling interest. As of June 30, 2014, the Company had $373 million of cash and cash equivalents and marketable securities compared with $952 million as of Dec. 31, 2013. "I'm pleased to report our best quarterly results in seven years," said James S. Metcalf, Chairman, president, and CEO. "Despite slower than expected acceleration in industry opportunity, most of our businesses and products improved their performance from a year ago and we also recorded our first full quarter of operations in our USG Boral joint venture." "We remain confident in the recovery, but challenges in the macro- economic environment still exist," Mr. Metcalf said. "However, we believe that the second half of the year will be better than the first half and we are well positioned to capitalize on the improving opportunity." A full-text copy of the Form 10-Q is available for free at: http://is.gd/x0cBuH A conference call and webcast to discuss second quarter 2014 results was held at 10:00 a.m. Central Time on July 24, 2014. A copy of the slides presented as part of the webcast is available for free at http://is.gd/kLOgm1 Effective April 1, 2014, the Company changed the composition of its reportable segments to reflect the change in management over its businesses in Mexico and Latin America and the contribution of the Company's businesses in Asia-Pacific, India and Oman into its 50/50 joint venture with Boral Limited, USG Boral Building Products, or UBBP. Accordingly, the Company's segments are now structured around its key products and business units: (1) Gypsum, (2) Ceilings, (3) Distribution and (4) UBBP. About USG Corporation Based in Chicago, Ill., USG Corporation -- http://www.usg.com/-- through its subsidiaries, manufactures and distributes building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. The company filed for Chapter 11 protection on June 25, 2001 (Bankr. Del. Case No. 01-02094). When the Debtors filed for protection from their creditors, they disclosed $3.252 billion in assets and $2.739 billion in liabilities. The Debtors emerged from bankruptcy protection on June 20, 2006. USG Corporation reported net income of $46 million in 2013, as compared with a net loss of $125 million in 2012. * * * As reported by the TCR on March 12, 2014, Standard & Poor's Ratings Services raised its corporate credit rating on Chicago- based USG Corp. to 'B+' from 'B'. "The upgrade reflects our view that improving U.S. housing construction will allow for increased selling prices and higher volume in USG's gypsum and worldwide ceiling segments, through which USG will continue to improve its leverage to about 4.7x by the end of 2014, and to below 4.5x by the end of 2015," said Standard & Poor's credit analyst Maurice Austin. As reported by the TCR on Oct. 30, 2013, Moody's Investors Service upgraded USG Corp.'s Corporate Family Rating to B3 from Caa1. The upgrade reflects better than anticipated overall 3Q13 operating performance. In the Sept. 10, 2013, edition of the TCR, Fitch Ratings has upgraded the ratings of USG Corporation, including the company's Issuer Default Rating (IDR) to 'B' from 'B-'. The upgrade reflects USG's improving profitability and credit metrics this year and the expectation that this trend continues through at least 2014. USG CORP: Gates Capital Reports 5.1% Equity Stake ------------------------------------------------- Gates Capital Management, Inc., and its affiliates disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that as of July 15, 2014, they beneficially owned 6,991,310 shares of Common Stock of USG Corporation representing 5.1 percent (based on 137,856,961 shares of Common Stock issued and outstanding as of March 31, 2014). A full-text copy of the regulatory filing is available for free at http://is.gd/uJuSjL About USG Corporation Based in Chicago, Ill., USG Corporation -- http://www.usg.com/-- through its subsidiaries, manufactures and distributes building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. The company filed for Chapter 11 protection on June 25, 2001 (Bankr. Del. Case No. 01-02094). When the Debtors filed for protection from their creditors, they disclosed $3.252 billion in assets and $2.739 billion in liabilities. The Debtors emerged from bankruptcy protection on June 20, 2006. USG Corporation reported net income of $46 million in 2013, as compared with a net loss of $125 million in 2012. As of Dec. 31, 2013, the Company had $4.12 billion in total assets, $3.45 billion in total liabilities and $662 million in total stockholders' equity including noncontrolling interest. * * * As reported by the TCR on March 12, 2014, Standard & Poor's Ratings Services raised its corporate credit rating on Chicago- based USG Corp. to 'B+' from 'B'. "The upgrade reflects our view that improving U.S. housing construction will allow for increased selling prices and higher volume in USG's gypsum and worldwide ceiling segments, through which USG will continue to improve its leverage to about 4.7x by the end of 2014, and to below 4.5x by the end of 2015," said Standard & Poor's credit analyst Maurice Austin. As reported by the TCR on Oct. 30, 2013, Moody's Investors Service upgraded USG Corp.'s Corporate Family Rating to B3 from Caa1. The upgrade reflects better than anticipated overall 3Q13 operating performance. In the Sept. 10, 2013, edition of the TCR, Fitch Ratings has upgraded the ratings of USG Corporation, including the company's Issuer Default Rating (IDR) to 'B' from 'B-'. The upgrade reflects USG's improving profitability and credit metrics this year and the expectation that this trend continues through at least 2014. USG CORP: Reclassifies Board of Directors ----------------------------------------- Pursuant to the Restated Certificate of Incorporation of USG Corporation and the Company's Amended and Restated By-Laws, the members of the Company's board of directors are elected to serve staggered terms and are divided into three classes, with each class being as nearly equal in number as practicable, and with the term of office of one class of Board members expiring at each annual meeting of stockholders. Following the previously disclosed retirement of Douglas Ford from the Board, the Board consisted of two directors with terms expiring in 2015, three directors with terms expiring in 2016 and four directors with terms expiring in 2017. At a meeting of the Board held on July 16, 2014, and in order to ensure that the Board consists of three classes divided as evenly as practicable, Ms. Gretchen R. Haggerty, previously a director with a term expiring in 2017, resigned as a director. Immediately thereafter, Ms. Haggerty was elected as a director with a term expiring in 2015 by the remaining members of the Board. Concurrently with her election as a director with a term expiring in 2015, Ms. Haggerty was also reelected to the Audit Committee and Finance Committee of the Board, which are the two committees of the Board on which Ms. Haggerty had been serving. Ms. Haggerty's resignation and reelection were effected solely to reclassify the Board in order to have three classes divided as evenly as practicable. For all other purposes, including director compensation matters, Ms. Haggerty's service on the Board is deemed to have continued uninterrupted since her initial election to the Board in May 2011. Ms. Haggerty, and the other two directors with a term expiring in 2015, will stand for election at the annual meeting of the Company's stockholders to be held in May 2015. On July 16, 2014, the Board amended Article III, Section 2(a) of the Company's By-Laws, to state that the number of directors constituting the Board will not be less than eight or more than twelve. Previously, the By-laws provided that the number of directors constituting the Board shall not be less than nine or more than 13. At the same time, the Board also amended Article III, Section 2(d) of the Company's By-Laws, to provide that in general, no non- employee director will serve beyond the first annual meeting of stockholders following that director's 72nd birthday. Previously, the By-laws provided that no non-employee director will serve beyond the first annual meeting of stockholders following that director's 70th birthday. About USG Corporation Based in Chicago, Ill., USG Corporation -- http://www.usg.com/-- through its subsidiaries, manufactures and distributes building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. The company filed for Chapter 11 protection on June 25, 2001 (Bankr. Del. Case No. 01-02094). When the Debtors filed for protection from their creditors, they disclosed $3.252 billion in assets and $2.739 billion in liabilities. The Debtors emerged from bankruptcy protection on June 20, 2006. USG Corporation reported net income of $46 million in 2013, as compared with a net loss of $125 million in 2012. As of Dec. 31, 2013, the Company had $4.12 billion in total assets, $3.45 billion in total liabilities and $662 million in total stockholders' equity including noncontrolling interest. * * * As reported by the TCR on March 12, 2014, Standard & Poor's Ratings Services raised its corporate credit rating on Chicago- based USG Corp. to 'B+' from 'B'. "The upgrade reflects our view that improving U.S. housing construction will allow for increased selling prices and higher volume in USG's gypsum and worldwide ceiling segments, through which USG will continue to improve its leverage to about 4.7x by the end of 2014, and to below 4.5x by the end of 2015," said Standard & Poor's credit analyst Maurice Austin. As reported by the TCR on Oct. 30, 2013, Moody's Investors Service upgraded USG Corp.'s Corporate Family Rating to B3 from Caa1. The upgrade reflects better than anticipated overall 3Q13 operating performance. In the Sept. 10, 2013, edition of the TCR, Fitch Ratings has upgraded the ratings of USG Corporation, including the company's Issuer Default Rating (IDR) to 'B' from 'B-'. The upgrade reflects USG's improving profitability and credit metrics this year and the expectation that this trend continues through at least 2014. VERIS GOLD: U.S. Court Recognizes Canadian Restructuring -------------------------------------------------------- Veris Gold Corp. on July 24 disclosed that it has been granted provisional relief under Section 1519 of the Bankruptcy Code in the United States as of July 23, 2014. This ruling recognizes the Canadian proceeding of Companies' Creditors Arrangement Act ("CCAA") and as a result protects the assets of the Company and the interests of the creditors until such time as a ruling on the Petition for Recognition and Chapter 15 Relief is granted. All inquiries regarding Veris' CCAA proceedings should be directed to the Monitor, Ernst & Young: Mr. Rocky Ho at (604) 891-8425. Information about the CCAA proceeding, including copies of all court orders and the Monitor's reports, is available at the Monitor's Web site: www.ey.com/ca/verisgold About Veris Gold Corp. Veris Gold Corp. is a growing mid-tier North American gold producer in the business of developing and operating gold mines in geo-politically stable jurisdictions. The Company's primary assets are the permitted and operating Jerritt Canyon processing plant and gold mines located 50 miles north of Elko, Nevada, USA. The Company's primary focus is on the re-development of the Jerritt Canyon mining and processing plant. The Company also holds a portfolio of precious metals properties in British Columbia and the Yukon Territory, Canada, including the Ketza River Property. * * * As reported in the TCR on April 11, 2013, Deloitte LLP, in Vancouver, Canada, expressed substantial doubt about Veris Gold's ability to continue as a going concern, citing the Company's net losses over the past several years, working capital deficit in the amount of US$34.3 million and accumulated deficit of US$379.0 million as at Dec. 31, 2012. VERSO PAPER: Amends Subordinated Debt Exchange Offer ---------------------------------------------------- Verso Paper Corp. announced that two of its wholly owned subsidiaries, Verso Paper Holdings LLC and Verso Paper Inc. have amended the terms of their exchange offer and consent solicitation with respect to their outstanding 11 3?8% Senior Subordinated Notes due 2016. The Subordinated Notes Exchange Offer, together with the Issuers' previously announced exchange offer and consent solicitation with respect to their outstanding 8.75% Second Priority Senior Secured Notes due 2019 are being conducted pursuant to the Agreement and Plan of Merger dated as of Jan. 3, 2014, among Verso, Verso Merger Sub Inc., and NewPage Holdings Inc., pursuant to which Verso will acquire NewPage by means of the merger of Merger Sub with and into NewPage on the terms and subject to the conditions set forth in the Merger Agreement, with NewPage surviving the Merger as an indirect, wholly owned subsidiary of Verso. The closing of the Merger is conditioned upon consummation of the exchange offers. Verso also announced that the Second Lien Notes Exchange Offer has been amended to give holders of Old Second Lien Notes who tender before the Second Lien Notes Expiration Time on July 30, 2014, the same consideration as those who tendered prior to the Second Lien Notes Early Tender Time on July 16, 2014. As of July 23, 2014, holders of approximately $99.7 million in aggregate principal amount of Old Subordinated Notes have tendered their Old Subordinated Notes or agreed with Verso and the Issuers to tender their Old Subordinated Notes in the amended Subordinated Notes Exchange Offer, and holders of approximately $286.9 million in aggregate principal amount of Old Second Lien Notes have tendered their Old Second Lien Notes in the Second Lien Notes Exchange Offer. "We thank the holders of our Old Second Lien Notes and Old Subordinated Notes who have committed to the exchange offers for their support," said Verso President and CEO Dave Paterson, "Successful completion of the exchange offers is an important step toward the closing of our acquisition of NewPage." Amendment to Subordinated Notes Exchange Offer The Subordinated Notes Exchange Offer and the Subordinated Notes consent solicitation have been amended as set forth below. CUSIP/ISIN: 92531XAF9/ US92531XAF96 Outstanding $142,500,000 Principal Amount of Old Subordinated Notes: Subordinated Notes $1,000 principal amount of New Total Consideration Subordinated Notes and Warrants if Tendered prior to or on the Subordinated Notes Early Tender Time: Subordinated Notes $850 principal amount of New Exchange Subordinated Notes and Warrants Consideration if Tendered after the Subordinated Notes Early Tender Time: Principal Amount of $710 principal amount of New New Subordinated Subordinated Notes subject to Notes Following the adjustment based on participation Merger per $1,000 in the Subordinated Notes Principal Amount of Exchange Offer New Subordinated Notes Prior to the Merger: The Issuers have also amended the terms of the New Subordinated Notes as follows: upon the consummation of the Merger, (i) the principal amount of the outstanding New Subordinated Notes will be adjusted such that a holder of $1,000 principal amount of New Subordinated Notes immediately prior to the Merger will hold $710 principal amount of New Subordinated Notes immediately following the Merger (assuming 100% participation in the Subordinated Notes Exchange Offer), (ii) the maturity date of the New Subordinated Notes will be extended to Aug. 1, 2020, and (iii) the interest rate will be adjusted such that the New Subordinated Notes will bear interest from and after the date of the consummation of the Merger at a rate of 11% per annum payable in cash plus 5% per annum payable by increasing the principal amount of the outstanding New Subordinated Notes or by issuing additional New Subordinated Notes. Following the consummation of the Merger, the Issuers may redeem the New Subordinated Notes, in whole or in part, at any time prior to Aug. 1, 2017, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, plus a make-whole premium. At any time following the consummation of the Merger and on or after Aug. 1, 2017, Aug. 1, 2018 or Aug. 1, 2019, the Issuers may redeem the New Subordinated Notes at their option at 105.500%, 102.750% and 100.000%, respectively. The consummation of the Subordinated Notes Exchange Offer is conditioned upon, among other things, the valid tender, and not withdrawal, of at least 70% in aggregate principal amount of outstanding Old Subordinated Notes. The Issuers will make alternative arrangements on similar economic terms to the Subordinated Notes Exchange Offer for holders who are not Eligible Holders; the 70% minimum condition will include in it any Old Subordinated Notes held by such holders that tender pursuant to such alternative arrangements. Amendment to Second Lien Notes Exchange Offer The Issuers have amended the terms of the Second Lien Notes Exchange Offer so that the Second Lien Notes Exchange Consideration (as defined in the Offering Documents) per $1,000 principal amount of Old Second Lien Notes tendered after 12:00 midnight, New York City time, at the end of July 16, 2014, will include $1,000 principal amount of new Second Priority Adjustable Senior Secured Notes instead of $950 principal amount of New Second Lien Notes. As a result, holders of Old Second Lien Notes that validly tender Old Second Lien Notes after the Second Lien Notes Early Tender Time, but prior to 12:00 midnight, New York City time, at the end of July 30, 2014, will now receive for each $1,000 principal amount of Old Second Lien Notes tendered and accepted by the Company, $1,000 principal amount of New Second Lien Notes, without giving effect to the adjustment in principal amount upon the consummation of the Merger, and the Second Lien Notes Warrant Consideration. A full-text copy of the press release is available for free at: http://is.gd/NccDCo About Verso Verso is a North American producer of coated papers, including coated groundwood and coated freesheet, and specialty products. Verso is headquartered in Memphis, Tennessee, and owns three paper mills located in Maine and Michigan. Verso's paper products are used primarily in media and marketing applications, including magazines, catalogs and commercial printing applications such as high-end advertising brochures, annual reports and direct-mail advertising. Additional information about Verso is available on its Web site at www.versopaper.com. * * * As reported by the TCR on July 10, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Memphis, Tenn.- based Verso Paper Holdings LLC to 'CC' from 'CCC'. "The rating action reflects the announcement that the company plans to conduct a two-part exchange for its senior secured second-priority notes and senior subordinated notes," said Standard & Poor's credit analyst David Kuntz. The TCR reported on June 24, 2014, that Moody's Investors Service downgraded Verso Paper Holdings LLC's corporate family rating (CFR) to Caa3 from B3 and probability of default rating (PDR) to Caa3-PD from Caa2-PD. Verso's Caa3 CFR reflects the elevated risk of a default or distressed exchange in the next 12 months, the company's weak liquidity, high leverage (adjusted leverage over 13x), and the expectation that the company will continue to face secular demand declines and weak prices for most of the grades of coated paper it produces. VERITEQ CORP: Enters Into Consulting and Marketing Agreements ------------------------------------------------------------- During the period starting on July 1, 2014, Veriteq Corporation entered into several consulting agreement and amended a previous marketing agreement, which, in the aggregate, result in the issuance of 1,550,000 shares. The two agreements and the amendment are as follows: On July 15, the Company agreed with RedChip Companies Inc. to modify its marketing agreement such that it would issue 500,000 shares of common stock in lieu of any amounts owed but unpaid, and would not have to make monthly cash payments during July and August, 2014. On Sept. 1, 2014, cash payments of $10,000 per month would resume. On July 14, 2014, the Company entered into a consulting agreement with SmallCap Voice.com Inc. pursuant to which the consultant was to be compensated in shares of common stock of the Company. Under the terms, the Company has issued 500,000 shares of common stock. On July 1, 2014, the Company entered into an advisory and consulting agreement with Hanover Financial Services pursuant to which the consultant was to be compensated partly in shares of common stock of the Company. Under the terms, the Company is to issue 550,000 shares of common stock and paid $5,000 for three months of consulting services. Securities Purchase Agreement and Convertible Promissory Note Effective July 15, 2014 Effective July 15, 2014, the funding date, VeriTeQ Corporation entered into a securities purchase agreement with an accredited investor. Pursuant to the terms of the Purchase Agreement, the Company issued and sold to the purchaser a convertible promissory note in the aggregate principal amount of $83.500. The note, which accrues interest at a rate of 8% per annum, will mature on April 14, 2015. The note provides the Company with several pre-payment options with varying amount due depending upon the timing of the prepayment. The note may be converted in whole or in part into the Company's common stock, at the option of the holder, at any time following 180 days after issuance and until the maturity date, unless the conversion or share issuance under the conversion would cause the holder to beneficially own in excess of 4.99% of the Company's common stock. The conversion price will be 61% multiplied by the market price. Market price means the average of the lowest three (3) trading prices for the Company's common stock during the ten (10) trading day period ending on the latest complete trading day prior to the date of conversion. If and whenever the Company issues or sells, or is deemed to have issued or sold, any shares of common stock for a consideration per share less than a price equal to the conversion price in effect immediately prior to such issue or sale or deemed issuance or sale, then, immediately after such Dilutive Issuance, the conversion price then in effect will be reduced to an amount equal to the new issuance price. Convertible Note Effective July 16, 2014 Effective July 16, 2014, the funding date, the Company entered into a convertible note with an accredited investor in an amount up to $500,000. On July 16, 2014, the Company received $125,000 as the initial consideration under the terms of the note. The Investor may pay additional consideration to the Company in such amounts and at such dates as the Investor may choose in its sole discretion. The note bears an original issue discount of 10% of the amounts funded by the Investor and bears no interest for the first 90 days after each payment of consideration. If any amount funded is not paid within the 90 day period, a one-time interest payment of 12% of the amount funded becomes due. The maturity date is two years from the effective date of each payment of consideration made to the Company by the Investor. The note may be converted in whole or in part into the Company's common stock, at the option of the Investor. The conversion price is the lesser of $0.14 or 60% of the lowest trade price in the 25 trading days previous to the conversion. Unless otherwise agreed in writing by both parties, at no time will the Investor convert any amount of the note into common stock that would result in the Investor owning more than 4.99% of the Company's common stock outstanding. The note provides for the Company to include the shares underlying the note in any subsequently filed registration statement to the extent that the Company files a registration statement with the Securities and Exchange Commission. Failure to do so will result in liquidated damages of 25% of the outstanding principal balance of the note, but not less than $25,000, being immediately due and payable to the Investor at its election in the form of cash payment or addition to the balance of this note. So long as the note is outstanding, upon any issuance by the Company or any of its subsidiaries of any security with any term more favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly provided to the Investor in the note, then the Company will notify the Investor of such additional or more favorable term and such term, at the Investor's option, will become a part of the transaction documents with the Investor. About VeriTeQ VeriTeQ (formerly known as Digital Angel Corporation) develops innovative, proprietary RFID technologies for implantable medical device identification, and dosimeter technologies for use in radiation therapy treatment. VeriTeQ offers the world's first FDA cleared RFID microchip technology that can be used to identify implantable medical devices, in vivo, on demand, at the point of care. VeriTeQ's dosimeters provide patient safety mechanisms while measuring and recording the dose of radiation delivered to a patient in real time. For more information on VeriTeQ, please visit www.veriteqcorp.com . Veriteq Corporation reported a net loss of $15.07 million on $18,000 of sales for the year ended Dec. 31, 2013, as compared with a net loss of $1.60 million on $0 of sales for the year ended Dec. 31, 2012. As of March 31, 2014, the Company had $7.97 million in total assets, $15.19 million in total liabilities and a $7.21 million total stockholders' deficit. EisnerAmper LLP, in New York, New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred recurring net losses, and at Dec. 31, 2013, had negative working capital and a stockholders' deficit. These events and conditions raise substantial doubt about the Company's ability to continue as a going concern. VIGGLE INC: Study Finds Viggle Improves TV Ad Effectiveness ----------------------------------------------------------- Viggle Inc. has released findings from its "Brand Effect Study" showing that exposure to TV advertisements seen on both television and the Viggle app resulted in higher brand recall. The study concluded that Brand and Message Recall, Likeability, and Purchase Intent were higher for a campaign that took place in May, as a result of a TV advertising buy being extended to Viggle's platform. "This study demonstrates that when a brand establishes a second screen media presence via the Viggle platform in conjunction with its TV spend, it drives higher awareness, stronger message recall and greater purchase intent among its key consumers," said Kevin Arrix, chief revenue officer of Viggle. "Furthermore, while we address this as 'second screen', it's worth noting that mobile device usage, while the television is on, is de facto in today's household. In order to ensure getting the in-home consumer's attention, brands have to distribute their messaging on both the TV and the mobile device." As part of the commissioned study, Nielsen surveyed three groups of Viggle members that were defined as TV Only Exposed, Viggle Only Exposed and TV and Viggle Exposed. Those that watched and checked into a TV show where the ad aired, but were not served the ad in the app were defined as TV Only Exposed. A verified check in occurs when Viggle's patented technology confirms that a user is watching a particular program by sampling and accurately matching the audio. Users that did not check into or watch a TV show where the ad aired, but had the opportunity to view the ad on Viggle were determined as Viggle Only Exposed. TV and Viggle Exposed users were Viggle users that watched and checked into a TV show where the ad aired and were also served the ad in the Viggle app. Key findings from the study found that dual exposure to the ad on both TV and within the Viggle platform boosted resonance, resulting in a 39% increase in brand recall among TV and Viggle Exposed users (46%) versus TV Only Exposed users (33%). Dual exposure also yielded a significant uptick in likeability and interest in the creative with users expressing interest to purchase. The 20% of TV and Viggle Exposed users who were interested in purchasing the product seen in the advertisement was nearly double the number of TV Only users (12 %), who felt similarly. Other key findings from the study include: * Forty percent of TV and Viggle users were able to recall the ad, brand and message of the TV ad in comparison to 25% of TV Only users * Positive Likeability was higher among TV and Viggle users at 46% compared to 37% among TV Only users * Once respondents recalled the ad, 87% of TV and Viggle exposed users were able to recall the correct brand compared to 79% of TV Only users About Viggle New York City-based Viggle Inc. is a loyalty marketing company. The Company has developed a loyalty program for television that gives people real rewards for checking into the television shows they are watching on most mobile operating system. Viggle users can redeem their points in the app's rewards catalog for items such as movie tickets, music, or gift cards. Viggle incurred a net loss of $91.40 million on $13.90 million of revenues for the year ended June 30, 2013, as compared with a net loss of $96.51 million on $1.73 million of revenues during the prior year. The Company's balance sheet at March 31, 2014, showed $68.09 million in total assets, $62.79 million in total liabilities, $37.54 million in series A convertible redeemable preferred stock, and a $32.23 million total stockholders' deficit. BDO USA, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and at June 30, 2013, has deficiencies in working capital and equity that raise substantial doubt about its ability to continue as a going concern. WALTER ENERGY: D. Cartwright No Longer Heads Canadian Operations ---------------------------------------------------------------- Walter Energy, Inc., received notice on July 23, 2014, from Daniel P. Cartwright, the president-Canadian Operations of the Company, of his decision to terminate his employment with the Company, effective July 31, 2014. Pursuant to his employment arrangement with the Company, Mr. Cartwright elected to terminate his employment for "good reason," based on a material diminution in his authority, duties and responsibilities brought about as a result of the idling of the Company's Canadian operations announced in April 2014. In connection with his termination for "good reason," Mr. Cartwright is entitled to receive certain severance payments from the Company, subject to Mr. Cartwright's execution of a release of claims and compliance with certain restrictive covenants, including non-competition and non-solicitation. From Aug. 1, 2014, through July 31, 2015, Mr. Cartwright is entitled to monthly payments in the gross amount of approximately $49,088, which amount is equal to one-twelfth (1/12) times the sum of his annual base salary and annual target bonus in effect on the Termination Date. Mr. Cartwright is also entitled to continuation of the benefits that he is receiving from the Company as of the Termination Date until the earliest to occur of (i) July 31, 2015, (ii) the last date on which he is eligible to participate in the benefit under applicable law and (iii) the date on which he becomes eligible to receive comparable benefits from a subsequent employer. About Walter Energy Walter Energy is a leading, publicly traded "pure-play" metallurgical coal producer for the global steel industry with strategic access to high-growth steel markets in Asia, South America and Europe. The Company also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas. Walter Energy employs approximately 2,900 employees with operations in the United States, Canada and United Kingdom. The Company's balance sheet at March 31, 2014, showed $5.64 billion in total assets, $4.97 billion in total liabilities and $669.6 million in total stockholders' equity. * * * As reported by the TCR on July 1, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Birmingham, Ala.- based Walter Energy Inc. to 'CCC+' from 'B-'. S&P believes the company's capital structure is likely unsustainable in the long- term absent an improvement in met coal prices. The TCR reported on July 10, 2014, that Moody's downgraded the Corporate Family Rating of Walter Energy, Inc., to Caa2 from Caa1. WARNER MUSIC: 2010 International Agreement Assigned to WMIS ----------------------------------------------------------- WEA International, Inc., and WMIS Limited, each a wholly-owned subsidiary of Warner Music Group Corp., entered into an assignment and amendment agreement with Cinram Group Inc., Cinram GmbH and Cinram Operations UK Limited to the International Manufacturing and PP&S Agreement, dated as of July 1, 2010, as amended, between WMI and Cinram International Inc., Cinram GmbH and Cinram Operations UK Limited. Under the International Agreement, Cinram supplies the Company with manufacturing and pick/pack/ship services in the European Union. Pursuant to the Assignment and Amendment, the parties agreed to assign the International Agreement from WMI to WMIS with effect from Feb. 1, 2014. Notwithstanding the assignment of WMI's obligations under the International Agreement, WMI, at all times, shall remain directly and fully liable to Cinram for the performance of the obligations of WMI and WMIS under the International Agreement. In addition, the parties agreed to certain amendments to its existing manufacturing and pick/pack/ship arrangements. Except as expressly modified by the Assignment and Amendment, the terms of the International Agreement remain substantially the same as the terms of the International Agreement. The International Agreement now expires on Jan. 31, 2017. A copy of the Assignment and Amendment is available for free at: http://is.gd/ilzUPB About Warner Music Group Based in New York, Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- was formed by a private equity consortium of investors on Nov. 21, 2003. The Company is the direct parent of WMG Holdings Corp., which is the direct parent of WMG Acquisition Corp. WMG Acquisition Corp. is one of the world's major music-based content companies and the successor to substantially all of the interests of the recorded music and music publishing businesses of Time Warner Inc. The Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing. The Company's Recorded Music business primarily consists of the discovery and development of artists and the related marketing, distribution and licensing of recorded music produced by such artists. The Company's Music Publishing operations include Warner/Chappell, its global Music Publishing company, headquartered in New York with operations in over 50 countries through various subsidiaries, affiliates and non-affiliated licensees. In May 2011, Warner Music Group Corp. and Access Industries, the U.S.-based industrial group, announced the execution of a definitive merger agreement under which Access Industries will acquire WMG in an all-cash transaction valued at $3.3 billion. The purchase includes WMG's entire recorded music and music publishing businesses. On July 20, 2011, the Company notified the New York Stock Exchange, Inc., of its intent to remove the Company's common stock from listing on the NYSE and requested that the NYSE file with the SEC an application on Form 25 to report the delisting of the Company's common stock from the NYSE. On July 21, 2011, in accordance with the Company's request, the NYSE filed the Form 25 with the SEC in order to provide notification of that delisting and to effect the deregistration of the Company's common stock under Section 12(b) of the Securities Exchange Act of 1934, as amended. On August 2, 2011, the Company filed a Form 15 with the SEC in order to provide notification of a suspension of its duty to file reports under Section 15(d) of the Exchange Act. The Company continues to file reports with the SEC pursuant to the Exchange Act in accordance with certain covenants contained in the instruments governing the Company's outstanding indebtedness. Warner Music reported a net loss attributable to the Company $198 million on $2.87 billion of revenues for the fiscal year ended Sept. 30, 2013, as compared with a net loss attributable to the Company of $112 million on $2.78 billion of revenues for the fiscal year ended Sept. 30, 2012. The Company's balance sheet at March 31, 2014, showed $6.13 billion in total assets, $5.48 billion in total liabilities and $641 million in total equity. * * * As reported by the TCR on March 28, 2014, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on recorded music and music publishing company Warner Music Group Corp. (WMG). S&P's rating and negative outlook reflect continued uncertainty surrounding industry wide revenue and profitability trends affecting WMG over the intermediate term, despite recent signs of stabilization in the industry. WILLIAM C. INC: Case Summary & Unsecured Creditor ------------------------------------------------- Debtor: William C., Inc. dba Max Fitness 1300 Penn Road Hartselle, AL 35640 Case No.: 14-82039 Chapter 11 Petition Date: July 24, 2014 Court: United States Bankruptcy Court Northern District of Alabama (Decatur) Debtor's Counsel: Angela Stewart Ary, Esq. HEARD ARY, LLC 303 Williams Avenue SW Park Plaza Suite 921 Huntsville, AL 35801 Tel: 256-535-0817 Fax: 256-535-0818 Email: aary@heardlaw.com kheard@heardlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Tony Donald Burks, president/owner. The Debtor listed Waste Management, at 1120 Old Hwy 20 Tuscumbia, AL, as its largest unsecured creditor holding a claim of $500. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/alnb14-82039.pdf YOUR EVENT: Incurs $433K Net Loss for May 31 Quarter ---------------------------------------------------- Your Event, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $433,813 on $620,378 of revenue for the three months ended May 31, 2014, compared with a net loss of $171,023 on $nil of revenue for the same period last year. The Company's balance sheet at May 31, 2014, showed $2.43 million in total assets, $3.17 million in total liabilities, and a stockholders' deficit of $741,080. A copy of the Form 10-Q is available at: http://is.gd/YMKBwG Your Event, Inc., a development stage company, focuses on marketing and selling apparel and merchandise at retail sales prices under the Hello Kitty brand name. Its apparel products would consist of T-shirts, outerwear, fleece Jackets, and adjustable baseball caps; and hard goods would comprise tote bags, coin purses, cell phone covers, pins, ball point pens, eyeglass frames, plush seat cushions, plush dolls, keychains, and stickers. The company?s products would be sold primarily to sports stores owned and operated by major league baseball teams in the United States and Canada, as well as through mlb.com. Your Event, Inc. was founded in 2007 and is headquartered in Hermosa Beach, California. ZOGENIX INC: Amends Annual Incentive Plan for CEO and President --------------------------------------------------------------- The Board of Directors of Zogenix, Inc., approved an amendment and restatement of the Company's Annual Incentive Plan on July 22, 2014. Under the Amended Incentive Plan, the target bonus percentages were changed for Roger L. Hawley, the Company's chief executive officer, and Stephen J. Farr, Ph.D., the Company's president. Specifically, under the Amended Incentive Plan, Mr. Hawley's target bonus was increased from 50% of base salary to 65% of base salary and Dr. Farr's target bonus was increased from 45% of base salary to 55% of base salary. The target bonuses for the Company's other executive officers were not changed from current levels. Under the Amended Incentive Plan, individuals are eligible to earn bonuses based on corporate and individual performance for the applicable fiscal year. Unless otherwise approved by the Compensation Committee of the Board of Directors, corporate performance may be awarded within the range of 50% to 125% of target and individual performance may be awarded within the range of 0% to 125% of target. The Company expects to adopt an annual incentive program for future fiscal years, which will reward achievement at specified levels of corporate and individual performance and will contain target bonuses consistent with those disclosed in the Amended Incentive Plan. A complete copy of the Amended Incentive Plan is available for free at http://is.gd/oSZpn0 About Zogenix Inc. Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. Zogenix reported a net loss of $80.85 million in 2013, as compared with a net loss of $47.38 million in 2012. The Company's balance sheet at March 31, 2014, showed $99.98 million in total assets, $97.56 million in total assets, $2.41 million in total stockholders' equity. Ernst & Young LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's recurring losses from operations and lack of sufficient working capital raise substantial doubt about its ability to continue as a going concern. * BofA, Justice Dept. Remain Far Apart on Mortgage Pact ------------------------------------------------------- Devlin Barrett, Christina Rexrode and Andrew Grossman, writing for The Wall Street Journal, reported that Bank of America Corp. and the Justice Department remain far apart on a possible mortgage- securities settlement even though the Charlotte, N.C., bank offered $13 billion to resolve the civil probe, according to people familiar with the matter. According to the report, citing the people familiar with the matter, BofA is offering $13 billion in cash and consumer relief such as mortgage modifications to reduce payments for struggling borrowers but the Justice Department wants a bigger cash component than the bank offered. * Argentine Creditors Seek Names to Stop Deal-Killer Clause ----------------------------------------------------------- Katia Porzecanski and Bob Van Voris, writing for Bloomberg News, reported that Argentina creditors asked a U.S. judge to allow intermediaries to identify restructured debt holders, so the South American nation can seek their waiver of a clause that may scuttle any deal with holders of defaulted bonds. According to the report, while Argentina has said it's seeking to negotiate with holdouts, the nation may be constrained by a "rights against future offers? clause that obliges it to extend any improved offer on defaulted bonds to holders of restructured debt. The case is NML Capital Ltd. v. Republic of Argentina, 08-cv- 06978, U.S. District Court, Southern District of New York (Manhattan). * Argentine Default Drama Nears Critical Stage ---------------------------------------------- Taos Turner and Ken Parks, writing for The Wall Street Journal, reported that Argentina could make unfortunate history this week if it defaults on its foreign debt for the second time in 13 years as a showdown with creditors comes to a head. According to the report, although there is little fear of contagion for other emerging markets and minimal concern Argentina would suffer the kind of economic implosion of 13 years ago, a default still could cost one of Latin America's biggest economies dearly, keeping it shut out of international credit markets and crimping credit to companies. It also could complicate the transition to a new government after next year's presidential election, the Journal said. * UK High Court Rules 'Secret Fees' Go to Wronged Investor ---------------------------------------------------------- Law360 reported that the United Kingdom's highest court set precedent when ruling that a company that breached its financial duty while advising on a hotel purchase must pay the investors both damages as well as the "secret commission" it took while making the deal. According to the report, the decision came out of a long-winded dispute between a joint venture known as FHR European Ventures LLC that was advised by Cedar Capital Partners LLC on the EUR211.5 million ($286.1 million) purchase of a hotel in Monaco in 2004. Cedar Capital accepted a $13.5 million "secret commission" in connection with the deal, and the U.K. Supreme Court unanimously determined that FHR is rightfully due both damages relating to the breach of fiduciary duty and the amount of the secret fee, the report related. The case is FHR European Ventures LLC and others v. Cedar Capital Partners LLC, case number 2013/0049 in the Supreme Court of the United Kingdom. * Akerman Adds Three New Partners to Chicago Office --------------------------------------------------- Akerman LLP, a top 100 U.S. law firm serving clients across the Americas, on July 23 announced the addition of three partners to its Chicago office, and has now more than doubled the size of its Chicago team since opening the office five months ago with eight lawyers. The new partners, litigator Christine Bautista, healthcare lawyer Carolyn Metnick, and bankruptcy lawyer Michael Molinaro, bolster Akerman's national strengths in the financial services and healthcare industries, particularly in financial and securities litigation. They also expand the firm's capabilities in white collar crime and government investigation matters. Ms. Bautista joins the firm from the U.S. Attorney's Office, where she was an Assistant U.S. Attorney in the Central District of California, while Metnick joins from Barnes & Thornburg LLP and Molinaro arrives from Reed Smith LLP. Ms. Bautista is the second former Assistant U.S. Attorney to join Akerman's Chicago office in recent weeks, following the arrival of Paul Lillios who most recently served as a federal administrative law judge in Chicago for the last 20 years. "We are pleased to welcome Christine, Carolyn and Michael to Akerman's Chicago office," said Scott Meyers, the firm's Chicago office Managing Partner. "Our clients continue to seek counsel in complex transactional, regulatory enforcement and litigation matters, and in Chicago, we remain focused on thoughtful growth, assembling a team of lawyers who mirror Akerman's strengths in these areas and who share our commitment to the Akerman Client Experience." Ms. Bautista joins Akerman's Litigation Practice Group, concentrating her practice in white collar criminal defense and internal investigations, complex commercial litigation, and Bank Secrecy Act compliance issues. She is an accomplished trial lawyer with experience in criminal and civil investigations and prosecutions by the federal government and its enforcement agencies. She has worked with the U.S. Securities and Exchange Commission and tax authorities in various parallel investigations and has experience prosecuting white collar crimes, including securities fraud, tax fraud, money laundering, bank fraud, and public corruption. A native of Chicago, Ms. Bautista is active in numerous professional and community organizations including the Federal Bar Association and Trial Bar, the Chicago Asian American Bar Association, and the Filipino American Lawyers Association of Chicago. A member of Akerman's Healthcare Practice Group, Metnick focuses her practice on transactional and business issues affecting healthcare providers, including health systems, hospitals, multi-specialty clinics, IDTFs, FQHCs, surgery centers, and physician organizations. She guides her healthcare clients through various transactions including joint ventures, mergers and acquisitions, and reorganizations. She also counsels clients on governance matters, regulatory issues and federal fraud and abuse laws, including the Anti-Kickback Statute, and the Stark Law. In addition, Metnick counsels her clients on HIPAA compliance, healthcare technology (mData), clinical trial research issues, disputes and litigation with an emphasis in contract law, covenants not to compete, and business torts. Metnick serves as a board member for Ballet Chicago and the Illinois Association of Healthcare Attorneys, and as a vice-chair for the American Health Lawyers Association's Business Law & Governance Practice Group. She is recognized by Super Lawyers and was ranked in The National Law Journal's "Chicago's 40 Under 40" survey in 2013. Mr. Molinaro brings more than 30 years of experience to Akerman's Bankruptcy and Reorganization Practice Group representing many of the country's largest banks, financial institutions, and insurance companies in loan financing transactions, loan workouts, complex bankruptcy, reorganization and commercial law matters, and commercial litigation. Mr. Molinaro's nationwide practice includes buying and selling distressed businesses, advising lenders in connection with lender liability issues, and representing secured and unsecured creditors on a wide variety of commercial finance transactions, including healthcare, real estate, credit card, intellectual property, leasing, hedge fund, and derivative transactions. Mr. Molinaro is a Fellow of the Litigation Counsel of America and is recognized by Chambers USA and Super Lawyers. The combined experience of these new lawyers further strengthens Akerman's financial litigation practice on behalf of lenders, broker-dealers and hedge funds. They also expand the national footprint of Akerman's creditors' rights teams, which has handled some of the largest bankruptcies in U.S. history. The new additions also enhance Akerman's capabilities in regulatory compliance, government investigations and white-collar defense in a wide range of industries. Akerman's Chicago office now includes 18 lawyers, making Chicago one of Akerman's fastest-growing offices along with its New York, Miami, and Washington, D.C. locations. About Akerman LLP Akerman LLP -- http://www.akerman.com-- is a transactions and trial law firm known for its core strengths in middle market M&A, within the financial services and real estate industries, and for a diverse Latin America practice. With more than 600 lawyers and government affairs professionals and a network of 20 offices, it is ranked among the top 100 law firms in the United States by The National Law Journal NLJ 350 (2014). Akerman also is ranked among the top 50 law firms for diversity in The American Lawyer's Diversity Scorecard (2014). * FTI Consulting Bags Eight Global M&A Turnaround Atlas Awards -------------------------------------------------------------- FTI Consulting, Inc., the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, on July 24 disclosed that FTI Consulting was recently awarded eight Turnaround Atlas Awards by the Global M&A Network for excellence and outstanding achievements in the global restructuring, special situation merger and acquisition ("M&A") and turnaround markets. FTI Consulting was recognized in the following categories: -- Private Equity Turnaround of the Year (Large Markets) Apollo Global Management and Metropoulos & Co. acquisition of certain assets, including Twinkies, Mini Muffins, Cup Cakes, Ho Hos, Zingers and Suzy Q brands from Hostess Brands under Chapter 11 of the bankruptcy code -- Special Situation M&A Deal of the Year (Large Markets)Residential Capital reorganization under Chapter 11 of the bankruptcy code and sale of assets to Ocwen Loan Servicing and Berkshire Hathaway -- Consumer Goods Turnaround of the YearOrchard Supply Hardware Stores sale to Lowe's under Chapter 11 of the bankruptcy code -- Industrials Turnaround of the YearAmerican Suzuki Motor (North America) reorganization under Chapter 11 of the bankruptcy code -- Healthcare Services Turnaround of the YearRural/Metro Corporation reorganization under Chapter 11 of the bankruptcy code -- Materials & Resources Turnaround of the YearSino-Forest reorganization under Chapter 15 of the U.S. bankruptcy code and the Companies' Creditors Arrangement Act of Canada -- Chapter 11 Reorganization Deal of the Year (Middle Markets)Ahern Rentals reorganization under Chapter 11 of the bankruptcy code -- Restructuring of the Year (Small Middle Markets) Journal Register Company sale to affiliate of Alden Global Capital under Chapter 11 of the bankruptcy code "We are pleased to receive recognition for the great work our teams have performed across a broad range of industries and situations," said Bob Duffy, Global Co-Leader of the Corporate Finance/Restructuring segment at FTI Consulting. "With our global breadth and deep technical and industry expertise, FTI Consulting is well positioned to meet the increasing demands and challenges our clients are facing and to identify customized solutions that deliver optimal results." The Turnaround Atlas Awards exclusively honor excellence from the restructuring, bankruptcy, distressed investing and turnaround communities worldwide. The winners are selected independently based on identifiable performance criteria, including restructuring style, sustainability, number of creditors, sector challenges, timeliness and jurisdictional intricacies. About FTI Consulting FTI Consulting, Inc. -- http://www.fticonsulting.com-- is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. With more than 4,200 employees located in 26 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management, strategic communications and restructuring. The Company generated $1.65 billion in revenues during fiscal year 2013. * Jeff Nerland Joins SierraConstellation as Senior Director ----------------------------------------------------------- SierraConstellation Partners, LLC (SCP), an interim management and advisory firm to middle-market companies in transition, on July 21 disclosed that Jeff Nerland has joined the firm as a senior director. He brings 30 years of turnaround experience to SCP, providing advisory and interim management services to clients that are financially distressed or faced with volatile market conditions. Mr. Nerland is based in Los Angeles and reports to Lawrence Perkins, founder and CEO, and Winston Mar, managing director. "I have known Jeff for many years and am confident that his deep expertise in the retail and restaurant industries will serve SCP and our clients well," said Mr. Mar. "Jeff's addition is a big win for our team, and we couldn't be happier to have him join SCP." Mr. Nerland has conducted operational and financial restructurings in a broad variety of industries, including retail, restaurants, aerospace, contracting, distribution, transportation, manufacturing, and real estate. He has also held various senior executive roles on an interim basis, including chief restructuring officer, CEO and CFO for companies such as Hancock Fabrics, Coast Crane, Atlantis Seafood and Daphne's Greek Cafe. He also served as group president of DeCrane Aircraft, where he completed 10 acquisitions to form a leading provider of cabin interior products for the corporate aircraft industry. "I'm happy that I can put my restructuring experience to work at a growing, collaborative and results-oriented firm like SCP," said Mr. Nerland. "The middle market is ripe with opportunity and challenges for businesses, and I look forward to helping our clients find creative ways to prosper and grow." About SierraConstellation Partners, LLC SierraConstellation Partners, LLC -- http://www.sierraconstellation.com-- is a Los Angeles-based advisory firm serving middle-market companies and stakeholders in those firms. Clients include companies, management teams, their private equity investors, lenders, creditors, and other financial constituents. The firm's professionals have a record of success and achievement as financial advisors, interim managers and CROs to firms needing financial and operational restructuring and turnaround. SCP has four main service lines: interim management, advisory services, strategic investment advisory services, and direct capital investments. SCP also partners with select investors to serve as management teams for potential acquisitions and portfolio companies. * Legal 500 Recognizes Mintz Levin's Bankruptcy Practice -------------------------------------------------------- The Legal 500 United States has recognized Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. as a leading municipal bankruptcy firm in the 2014 edition. According to the guide, the Mintz Levin team, which is described by clients and peers as "active in virtually every case" and "strengthened by its deep bench in public finance and tax-exempt workouts and restructurings." For the second consecutive year, William W. Kannel, a Member of the Bankruptcy, Restructuring & Commercial Law Section, has been named to The Legal 500 United States' "Leading Lawyers" list, the highest ranking for individuals, for Finance ? Municipal Bankruptcy. The guide also highlighted Adrienne K. Walker and Ian A. Hammel, Members of the Bankruptcy, Restructuring & Commercial Law Section, Richard H. Moche and Ann-Ellen Hornidge, Members of the Public Finance Section, and Michael S. Gardener, a Member of the Litigation Section, as key attorneys in the firm's nationally ranked municipal bankruptcy group. The Legal 500 is an independent guide that surveys and interviews more than 250,000 corporate counsel globally each year. The Legal 500 United States is the only guide to recommend firms on a national basis. * BOND PRICING: For Week From July 21 to July 25, 2014 ------------------------------------------------------ Company Ticker Coupon Bid Price Maturity Date ------- ------ ------ --------- ------------- Alion Science & Technology Corp ALISCI 10.25 78.5 2/1/2015 Allen Systems Group Inc ALLSYS 10.5 50.125 11/15/2016 Allen Systems Group Inc ALLSYS 10.5 52.5 11/15/2016 Brookstone Co Inc BKST 13 38.25 10/15/2014 Brookstone Co Inc BKST 13 45 10/15/2014 Brookstone Co Inc BKST 13 34.75 10/15/2014 Buffalo Thunder Development Authority BUFLO 9.375 41.5 12/15/2014 Caesars Entertainment Operating Co Inc CZR 10 36.375 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.75 68.841 2/1/2016 Caesars Entertainment Operating Co Inc CZR 12.75 41.805 4/15/2018 Caesars Entertainment Operating Co Inc CZR 10 38.5 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.75 68.75 2/1/2016 Caesars Entertainment Operating Co Inc CZR 10 36.375 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10 38.75 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.75 68.75 2/1/2016 Caesars Entertainment Operating Co Inc CZR 10 38.75 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10 36.375 12/15/2018 Cenveo Corp CVO 8.875 103.8 2/1/2018 Champion Enterprises Inc CHB 2.75 0.25 11/1/2037 Endeavour International Corp END 5.5 41.75 7/15/2016 Energy Conversion Devices Inc ENER 3 0.125 6/15/2013 Energy Future Competitive Holdings Co LLC TXU 8.175 1 1/30/2037 Energy Future Holdings Corp TXU 5.55 75.962 11/15/2014 FairPoint Communications Inc/Old FRP 13.125 1 4/2/2018 Global Geophysical Services Inc GGS 10.5 48.25 5/1/2017 Global Geophysical Services Inc GGS 10.5 33.375 5/1/2017 James River Coal Co JRCC 7.875 12.5 4/1/2019 James River Coal Co JRCC 4.5 7 12/1/2015 James River Coal Co JRCC 10 7.25 6/1/2018 James River Coal Co JRCC 10 11 6/1/2018 James River Coal Co JRCC 3.125 2 3/15/2018 LBI Media Inc LBIMED 8.5 30 8/1/2017 Las Vegas Monorail Co LASVMC 5.5 10 7/15/2019 Lehman Brothers Inc LEH 7.5 13.5 8/1/2026 MBIA Global Funding LLC MBI 0.85535 99.875 8/1/2014 MF Global Holdings Ltd MF 6.25 45.5 8/8/2016 MF Global Holdings Ltd MF 1.875 44.5 2/1/2016 MModal Inc MODL 10.75 10.375 8/15/2020 MModal Inc MODL 10.75 10.125 8/15/2020 Momentive Performance Materials Inc MOMENT 11.5 30 12/1/2016 Morgan Stanley MS 2.875 99.655 7/28/2014 Motors Liquidation Co MTLQQ 7.2 11.25 1/15/2011 Motors Liquidation Co MTLQQ 6.75 11.25 5/1/2028 Motors Liquidation Co MTLQQ 7.375 11.25 5/23/2048 NII Capital Corp NIHD 10 30.05 8/15/2016 OnCure Holdings Inc RTSX 11.75 48.875 5/15/2017 Platinum Energy Solutions Inc PLATEN 14.25 74.75 3/1/2015 Platinum Energy Solutions Inc PLATEN 14.25 74.75 3/1/2015 Platinum Energy Solutions Inc PLATEN 14.25 74.75 3/1/2015 Platinum Energy Solutions Inc PLATEN 14.25 74.75 3/1/2015 Powerwave Technologies Inc PWAV 1.875 0.125 11/15/2024 Powerwave Technologies Inc PWAV 1.875 0.125 11/15/2024 Pulse Electronics Corp PULS 7 76.29 12/15/2014 TMST Inc THMR 8 11 5/15/2013 Terrestar Networks Inc TSTR 6.5 10 6/15/2014 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.25 15.5 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15 41.75 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.25 15.25 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15 41.5 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.5 15.5 11/1/2016 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.25 15.25 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.5 15 11/1/2016 Tunica-Biloxi Gaming Authority PAGON 9 60.75 11/15/2015 Western Express Inc WSTEXP 12.5 82.25 4/15/2015 Western Express Inc WSTEXP 12.5 82.5 4/15/2015 ********* 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, Psyche Castillon, 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 ***