/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/140804.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, August 4, 2014, Vol. 18, No. 215 Headlines 21ST CENTURY ONCOLOGY: S&P Cuts CCR to 'CCC+' on Recapitalization 22ND CENTURY: Obtains Patents for Technology to Remove Nicotene 407-409 ROCKAWAY: Case Summary & 4 Unsecured Creditors ACCIPITER COMMS: Wants Plan Filing Exclusivity Moved to Aug. 27 ADVANTAGE CARE: Case Summary & 14 Unsecured Creditors AFFYMAX INC: Posts $7.2 Million Net Income in Second Quarter ALION SCIENCE: Registers $246.3 Million Worth of Securities ALL AMERICAN PRODUCTS: Case Summary & 20 Top Unsecured Creditors ALLY FINANCIAL: Reports $323 Million Net Income in 2nd Quarter AMERICAN AXLE: Posts $52.2 Million Net Income in Second Quarter AMERICAN RESOURCE: Files for Bankruptcy Amid Slowdown AMERICAN RESOURCE: Case Summary & Largest Unsecured Creditors ARAMID ENTERTAINMENT: Gets OK to Joint Administration of Cases ASPEN GROUP: Incurs $5.3 Million Net Loss in Fiscal 2014 AUXILIUM PHARMACEUTICALS: To Get $10-Mil. in Milestone Payment BERRY PLASTICS: Posts $15 Million Net Income in Third Quarter BIOFUEL ENERGY: Incurs $2.7 Million Net Loss in Second Quarter BIOFUELS POWER: Plans to Build Gas-to-Liquids Plant in Texas BROADVIEW NETWORKS: Incurs $1.1 Million Net Loss in 2nd Quarter BUCCANEER ENERGY: Has Aug. 27 Plan Confirmation Hearing BUDD COMPANY: Court Extends Exclusive Period to August 29 BUDD COMPANY: Court Appoints Diana Adams as Fee Examiner BUDD COMPANY: Claimants Defer Filing Asbestos Claim Form BUILDERS FIRSTSOURCE: Files Form 10-Q, Earns $10.6-Mil. in Q2 BRAUN DEVELOPMENT: Case Summary & 15 Unsecured Creditors BWAY HOLDING: S&P Lowers CCR to 'B-' on Dividend Recap CAESARS ENTERTAINMENT: Fitch Raises Secured Debt Rating to CCC+ CAESARS ENTERTAINMENT: Bank Debt Trades at 7% Off CDW LLC: S&P Assigns 'B' Rating to $600MM Sr. Unsecured Notes CHARTER COMMUNICATIONS: S&P Rates New $8.9BB Secured Loans 'BB+' CLEAREDGE POWER: Seeks Extension of Exclusivity Periods COLOR STAR GROWERS: Seeks Extension of Solicitation Period CPI BUYER: S&P Assigns 'B' CCR & Rates $260MM Facility 'B' CROWN MEDIA: Posts $16 Million Net Income in Second Quarter CRUMBS BAKE SHOP: Noah Reynolds Dumps Equity Stake CRYOPORT INC: Incurs $3.1 Million Net Loss in Q1 Fiscal 2015 DIAGNOSTICS RESEARCH: Case Summary & 20 Top Unsecured Creditors DOW CORNING: Tissue Expanders Are Breast Implants, 6th Cir. Says DOW CORNING: $1.6BB Breast Implant Suit Reserve at June 30 DTS8 COFFEE: Delays Form 10-K for Fiscal 2014 E.W. SCRIPPS: S&P Puts 'BB-' CCR on Watch Pos. Over Merger Plans EDGENET INC: Wins September Extension of Plan Exclusivity Period ENERGY SERVICES: S&P Assigns 'B' CCR; Outlook Stable ESPIRITO SANTO FINANCIERE: Files for Creditor Protection EXIDE TECHNOLOGIES: Has $217.7MM Net Loss in Fiscal Year 2014 EXIDE TECHNOLOGIES: Obtains Amendments to DIP Loan Covenants EXIDE TECHNOLOGIES: Needs Until December to File Plan EXIDE TECHNOLOGIES: Can Obtain $65-Mil. of Additional Financing FALCON STEEL: Termination Date in Cash Collateral Order Moved FLORIDA GAMING: Court Confirms Liquidation Plan FURNITURE BRANDS: 2nd Amended Liquidation Plan Declared Effective FURNITURE BRANDS: Rejection & Admin Claims Bar Date Set GENERAL MOTORS: HMG Files Pre-Bankruptcy Ignition Switch Suits GETTY IMAGES: Bank Debt Trades at 4% Off GFI GROUP: Merger Plans Cues Fitch to Put BB- Ratings on Watch Pos GMAC MORTGAGE: 10th Cir. Affirms Ruling in "McKinsey" Suit GOLDEN LAND: Receiver, Creditor Seek Bar Dates GOLDEN LAND: Receiver, Creditor Seek to End Exclusive Periods GOOD SHEPHERD: S&P Retains 'BB+' Rating on CreditWatch Negative GREEN MOUNTAIN: Seeks to Reject Selwood Contract GREEN MOUNTAIN: Seeks Authority to Use UMB Bank Cash Collateral HOFFNER'S NURSERY: Case Summary & 20 Largest Unsecured Creditors IMH FINANCIAL: Restructures Debt; Appoints New Board Members INTERNATIONAL MARKETS: S&P Assigns 'B' Corp. Credit Rating ISR GROUP: Hearing to Consider Plan Outline Approval on Sept. 11 J.A.D HOSPITALITY: Case Summary & 4 Unsecured Creditors JACKSONVILLE BANCORP: Regains Compliance with NASDAQ Rule JACOBS FINANCIAL: Malin Bergquist Resigns as Accountant JAMES RIVER: Proofs of Claim Deadline Set for Sept. 22 KEMET CORP: Files Form 10-Q, Incurs $3.5MM Net Loss in Q2 KID BRANDS: Sassy Inc. Assets to Be Sold to Angelcare for $14MM KIDSPEACE CORP: Court Allows Plan to Become Effective LEHMAN BROTHERS: Raises Estimate of Recovered Funds to $88.8B LIBERTY INTERACTIVE: FTD Transaction No Impact on Fitch Ratings LUCID INC: Suspending Filing of Reports with SEC MANISTIQUE PAPERS: Lowenstein Fees May be Paid From Remark Deal MARINA BIOTECH: Pryor Cashman Holds 4.9% Equity Stake MAUI LAND: Reports $477,000 Net Income in Second Quarter MISSION NEW ENERGY: Had A$458,000 in Cash at June 30 MMODAL INC: Completes Financial Restructuring; Exits Chapter 11 MOONLIGHT APARTMENTS: Receiver Seeks Dismissal of SARE Case MUSCLEPHARM CORP: Inks Employment Agreements with CFO and COO NASSAU TOWER: TD Bank Blocks Confirmation of 2nd Amended Plan NATIONAL ED: Fitch Cuts & Withdraws Sub. Notes Rating to 'B-sf' NATIVE WHOLESALE: Amended Plan Okayed, Dismissal Motion Withdrawn NELSON EDUCATION: S&P Withdraws 'D' Corporate Credit Rating NEOMEDIA TECHNOLOGIES: To Restate 2013 10-K and Q1 2014 10-Q NEW ENGLAND COMPOUNDING: Judge Approves Settlements NEW WORLD RESOURCES: Files in Manhattan for UK Restructuring NEWPAGE CORP: S&P Retains 'B+' CCR on CreditWatch Negative NN INC: S&P Assigns 'B+' CCR & Rates $350MM Secured Loan 'B+' OHANA GROUP: Bush Strout & Kornfeld Withdraws as Counsel OHANA GROUP: Prior Counsel Asks Court to Convert Case to Chapter 7 PRODUCTION RESOURCE: S&P Rates New $150 Million Term Loan 'CCC+' RAAM GLOBAL: S&P Lowers Corp. Credit Rating to 'CCC+' REAL ESTATE ASSOCIATES: Delists Limited Partnership Units RIVER CITY RENAISSANCE: Files for Ch. 11 in Richmond, Virginia ROCKWELL MEDICAL: Incurs $3.2 Million Net Loss in Second Quarter SCRUB ISLAND: Panel Objects to Firstbank's Bid for Stay Relief SEALED AIR: S&P Assigns 'BB+' Rating on $2.13-Bil. Secured Loans SEQUENOM INC: Earns $4.4 Million in Second Quarter SEQUENOM INC: Posts $4.4 Million Net Earnings in Second Quarter SG ACQUISITION: S&P Affirms 'B' CCR & Rates $225MM Loans 'B' SMHC LLC: Plan Confirmation Hearing on Sept. 9 STACEY ELECTRIC: Files Bankruptcy; Creditors Meeting on Aug. 12 TACTICAL INTERMEDIATE: Sec. 341 Creditors' Meeting Set for Aug. 11 TACTICAL INTERMEDIATE: 3-Member Creditor's Committee Formed TALOS ENERGY: S&P Revises Outlook to Positive & Affirms 'B-' CCR TRINITY COAL: Unit Can't Reject Agreements With ICG Entities UNIFIED 2020: Has Final Authority to Use Cash Collateral USEC INC: ACTDO Agreement Extended Through March 2015 VERIS GOLD: Obtains Sept. 4 Extension of CCAA Stay Period VERSO PAPER: Announces Final Results of Exchange Offer VIAWEST INC: S&P Puts 'B' CCR on Watch Pos. Over Shaw Comm. Deal VULCAN MATERIALS: S&P Raises Corp. Credit Rating to 'BB+' WALTER ENERGY: Incurs $151.4 Million Net Loss in 2nd Quarter WALTER ENERGY: Bank Debt Trades at 6% Off WORLD PROPERTIES: Must File Plan by Sept. 5 to Avoid Foreclosure WPCS INTERNATIONAL: CFO to Resign on August 31 WPCS INTERNATIONAL: Sold Australia Operations for $1.4 Million YMCA OF METROPOLITAN: Panel Has Nod to Hire Goldstein as Counsel ZODIAC POOL SOLUTIONS: Seeks U.S. Recognition of UK Plan * Bankruptcy Filings Down 12% in June 2014 * Diligence Required to Avoid Pension Plan Minefields, Huron Says * U.S. Judge Rejects Argentina's Appeal for New Mediator * Jeffrey Manning Joins Reznick Capital as Managing Director * BOND PRICING: For Week From July 28 to August 1, 2014 ********* 21ST CENTURY ONCOLOGY: S&P Cuts CCR to 'CCC+' on Recapitalization ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered all of its ratings on 21st Century Oncology Holdings Inc., including the corporate credit rating to 'CCC+'. The outlook is negative, reflecting the potential for the company to exchange a portion of its subordinated note claims for equity. "We lowered our ratings because of increased risk that the company could exchange its $380 million subordinated notes for equity," said credit analyst Tulip Lim. "If consummated, the transaction would reduce the company's leverage by eliminating $380 million of debt and improve cash flow, but we would view the transaction itself as tantamount to default." The outlook is negative, reflecting the risk of a near-term debt for equity exchange. Downside scenario S&P could lower the ratings if the company's sponsors do not provide the company with additional liquidity and the subordinated noteholders exchange their notes for equity. In this scenario, S&P will lower the corporate credit rating to 'SD' and reassess the new capital structure to determine a final rating. If the company announces that it plans for file for bankruptcy or misses an interest payment, S&P would likely lower the rating to 'D'. Upside scenario S&P could raise the rating if the company receives additional liquidity. 22ND CENTURY: Obtains Patents for Technology to Remove Nicotene --------------------------------------------------------------- The U.S. Patent and Trademark Office (USPTO) on July 29, 2014, and the Korean Intellectual Property Office on July 23, 2014, each granted a patent to 22nd Century Group, Inc., for its NBB technology that virtually eliminates nicotine in the tobacco plant. The resulting tobacco plants are planted, grown, harvested, cured, processed, and made into tobacco products, including cigarettes, exactly the same as conventional tobacco. U.S. Patent 8,791,329, Reducing Levels of Nicotinic Alkaloids in Plants, contains 33 claims. South Korean Patent 10-1413122, also titled, Reducing Levels of Nicotinic Alkaloids in Plants, contains 15 claims. These two patents and related International Patent Application PCT/IB2006/001741, cover methods for producing tobacco plants with decreased nicotine levels and the resulting tobacco plants and products produced therefrom. There are various continuation and divisional patent applications related to these granted patents pending in both patent offices. The term of U.S. Patent 8,791,329 has been extended by the USPTO by 1,309 days due to prosecution delays at the USPTO. Joseph Pandolfino, 22nd Century Group's founder and CEO, stated, "We are pleased that the USPTO's patent term adjustment will extend the life of this key Company patent through September 2029. This technology will be utilized worldwide for our next generation very low nicotine (VLN) cigarettes, which we expect to have approximately 1% of the nicotine of conventional cigarettes - a 99% reduction." Conventional tobacco can easily be blended with the Company's VLN tobacco to produce tobacco with any desired nicotine content. Patent applications for the NBB technology have been filed by 22nd Century worldwide and patents are currently issued to 22nd Century in the U.S., China, Europe, Japan, South Korea, Taiwan, Mexico, Australia and South Africa. The NBB gene encodes a protein, "nicotine synthase," that is involved in the final step of nicotine biosynthesis. Having eluded scientists for decades, this protein can be down-regulated or up-regulated to produce tobacco varieties with a wide range of nicotine levels. About 22nd Century Clarence, New York-based 22nd Century Group, Inc., through its wholly-owned subsidiary, 22nd Century Ltd, is a plant biotechnology company using technology that allows for the level of nicotine and other nicotinic alkaloids (e.g., nornicotine, anatabine and anabasine) in tobacco plants to be decreased or increased through genetic engineering and plant breeding. 22nd Century reported a net loss of $26.15 million in 2013, a net loss of $6.73 million in 2012 and a net loss of $1.34 million in 2011. As of March 31, 2014, the Company had $11.93 million in total assets, $1.77 million in total liabilities and $10.15 million in total shareholders' equity. 407-409 ROCKAWAY: Case Summary & 4 Unsecured Creditors ------------------------------------------------------ Debtor: 407-409 Rockaway Realty LLC 6743 182nd Street Flushing, NY 11365 Case No.: 14-43933 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: July 31, 2014 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Hon. Nancy Hershey Lord Debtor's Counsel: Arnold Mitchell Greene, Esq. ROBINSON BROG LEINWAND GREENE GENOVESE & GLUCK P.C. 875 Third Avenue, 9th Floor New York, NY 10022 Tel: (212) 603-6399 Fax: (212) 956-2164 Email: amg@robinsonbrog.com Total Assets: $1.30 million Total Liabilities: $1.28 million The petition was signed by Yehonathan Ovadia, sole member. A list of the Debtor's four largest unsecured creditors is available for free at http://bankrupt.com/misc/nyeb14-43933.pdf ACCIPITER COMMS: Wants Plan Filing Exclusivity Moved to Aug. 27 --------------------------------------------------------------- Accipiter Communications, Inc. has requested that the Bankruptcy Court for the District of Arizona grant an extension to its exclusive period for filing and soliciting acceptances to its chapter 11 Plan of Reorganization. Specifically, Accipiter asks the Court to extend for 30 days, until Aug. 27, 2014, the exclusive right to file a chapter 11 plan, and for 60 days thereafter, until Oct. 26, 2014, the exclusive right to gain acceptances of its plan. Since filing its chapter 11 petition on March 28, 2014, the Debtor has been engaged in active negotiations with its secured lender, Rural Utilities Service of the U.S. Department of Agriculture (RUS), and the Official Committee of Unsecured Creditors. The Debtor believes the parties are close to working out a consensual plan. In fact, the Debtor states that neither RUS nor the Committee is opposed to the brief extension which would allow a consensual plan to be fully formulated. The bankruptcy estate would not be prejudiced by the extension because the Debtor is current on all its obligations. The Debtor argues that there is "cause" under Sec. 1121(d) of the Bankruptcy Code for granting the extension because the extension would "facilitate movement towards a fair and equitable resolution of the case." In re Henry Mayo Newhall Memorial Hospital, 282 B.R. 444 (9th Cir. B.A.P. 2002). The Debtor requested an expedited hearing on the request because its current exclusive period expires on July 28th. The Debtor is requesting that the exclusive period be extended to August 27th and that the solicitation period be extended to September 26th. The Debtor is represented by Jordan A. Kroop, Esq. and Bradley A. Cosman, Esq. at Perkins Coie LLP of Phoenix, AZ. A hearing on the Debtor's request is scheduled for August 5 in Phoenix. About Accipiter Communications Accipiter Communications, Inc., a Phoenix-based company that provides telecommunications services to unserved or underserved, mostly rurally-situated residences and businesses in central Arizona, filed a Chapter 11 bankruptcy petition (Bankr. D. Ariz. Case No. 14-04372) in its hometown on March 28, 2014. Accipiter provides telecommunications services to 1,409 residential subscribers and 231 business subscribers, including an elementary school, an enforcement agency, a fire station, two municipal water supply facilities, and a bank. The Debtor is able to provide telecommunications services to rural customers only by participating in two federal programs: revenue subsidies from the federal Universal Service Fund, which is administered under the authority of the Federal Communications Commission, and capital debt financing provided under a rural telecommunications loan program administered by the Rural Utilities Service, an agency of the U.S. Department of Agriculture. As of the Petition Date, the Debtor owed $20.8 million in aggregate principal to the RUS. The Debtor believes there is approximately $414,000 in prepetition general unsecured claims held by trade vendors or other parties against the Debtor. The Debtor is a privately held company, with 55.4% of the stock held by Lewis van Amerongen. In its schedules, the Debtor listed $31,250,731 in total assets and $21,628,826 in total liabilities. The bankruptcy case is assigned to Judge George B. Nielsen Jr. The Debtor has tapped Perkins Coie LLP as counsel. Ilene J. Lashinsky, U.S. Trustee for Region 14, appointed these three creditors to serve in the Official Committee of Unsecured Creditors. The Committee retained Stinson Leonard Street LLP as counsel. ADVANTAGE CARE: Case Summary & 14 Unsecured Creditors ----------------------------------------------------- Debtor: Advantage Care In Home Services, Inc. PO Box 1258 Henderson, NC 27536 Case No.: 14-04360 Chapter 11 Petition Date: July 31, 2014 Court: United States Bankruptcy Court Eastern District of North Carolina Judge: Hon. David M. Warren Debtor's Counsel: Danny Bradford, Esq. PAUL D. BRADFORD, PLLC dba BRADFORD LAW OFFICES 455 Swiftside Drive, Suite 106 Cary, NC 27518-7198 Tel: 919 758-8879 Fax: 919 803-0683 Email: dbradford@bradford-law.com Total Assets: $807,697 Total Liabilities: $1.17 million The petition was signed by Janice D. Ward, president. A list of the Debtor's 14 largest unsecured creditors is available for free at http://bankrupt.com/misc/nceb14-04360.pdf AFFYMAX INC: Posts $7.2 Million Net Income in Second Quarter ------------------------------------------------------------ Affymax, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income and comprehensive income of $7.20 million on $42,000 of total revenue for the three months ended June 30, 2014, as compared with net income and comprehensive income of $15.37 million on $525,000 of total revenue for the same period last year. For the six months ended June 30, 2014, the Company reported net income and comprehensive income of $5.81 million on $42,000 of total revenue as compared with a net loss and comprehensive loss of $11.67 million on $1.36 million of total revenue for the six months ended June 30, 2013. As of JUne 30, 2013, the Company had $5.38 million in total assets, $214,000 in total liabilities, all current, and $5.17 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/39kMOu About Affymax Affymax, Inc. (Nasdaq: AFFY) is a biopharmaceutical company based in Palo Alto, California. In March 2012, the U.S. Food and Drug Administration approved the Company's first and only product, OMONTYS(R) (peginesatide) Injection for the treatment of anemia due to chronic kidney disease in adult patients on dialysis. OMONTYS is a synthetic, peptide-based erythropoiesis stimulating agent, or ESA, designed to stimulate production of red blood cells and has been the only once-monthly ESA available to the adult dialysis patient population in the U.S. The Company co- commercialized OMONTYS with its collaboration partner, Takeda Pharmaceutical Company Limited, or Takeda during 2012 until February 2013, when the Company and Takeda announced a nationwide voluntary recall of OMONTYS as a result of safety concerns. Bankruptcy Warning "Because we have not made an irrevocable decision to liquidate, the accompanying condensed financial statements have been prepared under the assumption of a going concern basis that contemplates the realization of assets and liabilities in the ordinary course of business. Operating losses have been incurred each year since inception, resulting in an accumulated deficit of $559.5 million as of March 31, 2014. Nearly all of our revenues to date have come from our collaboration with Takeda. As a result of the February 23, 2013 nationwide voluntary recall of OMONTYS and the suspension of all marketing activities, there is significant uncertainty as to whether we will have sufficient existing cash to fund our operations for the next 12 months. Given our limited resources, there is no assurance that we will be able to reduce our operating expenses enough to meet our existing and future obligations and conduct ongoing operations. If we do not have sufficient funds to continue operations, we could be required to liquidate our assets, seek bankruptcy protection or other alternatives. Any failure to dispel any continuing doubts about our ability to continue as a going concern could adversely affect our ability to enter into collaborative relationships with business partners. These matters raise substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustments that may result from the outcome of this uncertainty," the Company said in the Quarterly Report for the period ended March 31, 2014. Affymax reported a net loss of $14.42 million in 2013 following a net loss of $93.41 million in 2012. Ernst & Young LLP, in Redwood City, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that there is significant uncertainty as to whether the Company will have sufficient financial resources to fund its operations for the next 12 months. This condition raises substantial doubt about the Company's ability to continue as a going concern. ALION SCIENCE: Registers $246.3 Million Worth of Securities ----------------------------------------------------------- Alion Science and Technology Corporation, on May 13, 2014, commenced an exchange offer, consent solicitation and unit offering pursuant to the registration statement on Form S-1, which registration statement was originally filed with the SEC on Feb. 13, 2014, as amended and declared effective on May 9, 2014, and the related prospectus, as amended. On July 29, the Company filed a new registration statement on Form S-1 which combines the securities registered on the Exchange Offer Registration Statement with the following additional securities registered: (1) 643,094 shares of Common Stock underlying Warrants; and (2) $246,387,430 aggregate principal amount of Third-Lien Senior Secured Notes due 2020 that may be issued as payment of interest on the Third-Lien Notes issuable in the exchange offer. The Exchange Offer and Consent Solicitation will expire at 9:00 a.m., New York City time, on Wednesday, Aug. 13, 2014, unless extended by the Company. Holders who tender Old Notes at or prior to 5:00 p.m., New York City time, on Tuesday, Aug. 12, 2014, will receive an Early Tender Payment. Tenders of Old Notes may be withdrawn at any time at or prior to the Expiration Date. The Unit Offering will expire on the Early Tender Date. The election to purchase Units in the Unit Offering cannot be revoked except that a valid withdrawal of Old Notes in the Exchange Offer will be deemed to have revoked any election to purchase Units in the Unit Offering. As of July 29, 2014, holders of Old Notes representing 90.74% of the Old Notes outstanding have tendered their Old Notes in the Exchange Offer. Holders of Old Notes who have already validly tendered their Old Notes pursuant to the Exchange Offer and Consent Solicitation do not need to take any further action to receive the applicable Exchange Consideration or Total Consideration on the settlement date. A full-text copy of the Form S-1 prospectus is available at: http://is.gd/iXMJMd 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 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. ALL AMERICAN PRODUCTS: Case Summary & 20 Top Unsecured Creditors ---------------------------------------------------------------- Debtor: All American Products Group, Inc. 24901 Avenue Stanford Valencia, CA 91355 Case No.: 14-24709 Chapter 11 Petition Date: July 31, 2014 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Hon. Richard M Neiter Debtor's Counsel: Dennis E McGoldrick, Esq. MCGOLDRICK 350 S Crenshaw Blvd Ste A207B Torrance, CA 90503 Tel: 310-328-1001 Email: dmcgoldricklaw@yahoo.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Artorn Benyasri, authorized individual. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb14-24709.pdf ALLY FINANCIAL: Reports $323 Million Net Income in 2nd Quarter -------------------------------------------------------------- Ally Financial Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $323 million on $2.10 billion of total financing revenue and other interest income for the three months ended June 30, 2014, as compared with a net loss of $927 million on $2 billion of total financing revenue and other interest income for the same period during the prior year. For the six months ended June 30, 2014, the Company reported net income of $550 million on $4.17 million of total financing revenue and other interest income as compared with net income of $166 million on $3.96 billion of total financing revenue and other interest income for the same period last year. The Company's balance sheet at June 30, 2014, showed $149.93 billion in total assets, $135.05 billion in total liabilities and $14.87 billion in total equity. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/ERXj5r About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/-- is one of the world's largest automotive financial services companies. The Company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3 percent stake. Private equity firm Cerberus Capital Management LP keeps 14.9 percent, while General Motors Co. owns 6.7 percent. As of March 31, 2014, the Company had $148.45 billion in total assets, $133.99 billion in total liabilities and $14.45 billion in total equity. * * * As reported by the TCR on Dec. 16, 2013, Standard & Poor's Ratings Services said it raised its issuer credit rating on Ally Financial Inc. to 'BB' from 'B+'. "The upgrade reflects the company's release from potential legal and financial liabilities stemming from its ownership of ResCap," said Standard & Poor's credit analyst Tom Connell. In the April 3, 2014, edition of the TCR, Fitch Ratings has upgraded Ally Financial Inc.'s long-term Issuer Default Rating (IDR) and senior unsecured debt rating to 'BB+' from 'BB'. The rating upgrade reflects increased clarity around Ally's ownership structure given Ally's recent announcement that it has launched an initial public offering those shares of its common stock held by the U.S. Treasury (the Treasury). As reported by the TCR on July 16, 2014, Moody's Investors Service affirmed the Ba3 corporate family and B1 senior unsecured ratings of Ally Financial, Inc. and revised the outlook for the ratings to positive from stable. Moody's affirmed Ally's ratings and revised its rating outlook to positive based on the company's progress toward sustained improvements in profitability and repayment of government assistance received during the financial crisis. AMERICAN AXLE: Posts $52.2 Million Net Income in Second Quarter --------------------------------------------------------------- American Axle & Manufacturing Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $52.2 million on $946.9 million of net sales for the three months ended June 30, 2014, as compared with net income of $25.8 million on $799.6 million of net sales for the same period last year. For the six months ended June 30, 2014, the Company posted net income of $85.8 million on $1.80 billion of net sales as compared with net income of $33.1 million on $1.55 billion of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2014, showed $3.20 billion in total assets, $3.05 billion in total liabilities and $143.4 million in total equity. "AAM's financial results in the second quarter of 2014 reflect strong sales growth and profitability driven by the favorable impact of increased production volumes across many of our major product programs supporting the North American light vehicle segment," said AAM's Chairman, president and chief executive officer, David C. Dauch. "AAM is energized to continue supporting these and other new global product and process launches during the remainder of this year and continuing through the year 2015. Many of these launches feature exciting new advanced driveline technologies that are enhancing the diversification of our business and positioning AAM for solid profitability and consistent free cash flow generation." A full-text copy of the Form 10-Q is available for free at: http://goo.gl/RrM1dR AAM's 2014 Outlook: * AAM is targeting full year sales of $3.7 billion in 2014. This sales projection is based on the anticipated launch schedule of programs in AAM's new and incremental business backlog and the assumption that the U.S. Seasonally Adjusted Annual Rate of sales ("SAAR") will increase from approximately 15.5 million light vehicle units in 2013 to a range of 16.25 million to 16.5 million light vehicle units in 2014. * AAM is targeting EBITDA in the range of 13.5% to 14.0% of sales in 2014. * AAM is targeting free cash flow of approximately $100 million in 2014. * AAM is targeting full year capital spending to be approximately 6.5% of sales in 2014. AAM's 2015 Targets: * AAM is targeting full year sales of $4 billion in 2015. This target is based on the anticipated launch schedule of programs in AAM's new and incremental business backlog and the assumption that the U.S. light vehicle SAAR will be approximately 16.5 million light vehicle units in 2015. * AAM is targeting free cash flow in the range of $175 million to $200 million in 2015. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE: AXL) -- http://www.aam.com/-- manufactures, engineers, designs and validates driveline and drivetrain systems and related components and chassis modules for light trucks, sport utility vehicles, passenger cars, crossover vehicles and commercial vehicles. * * * In September 2012, Moody's Investors Service affirmed the 'B1' Corporate Family Rating (CFR) and Probability of Default Rating (PDR) of American Axle. American Axle carries a 'BB-' corporate credit rating from Standard & Poor's Ratings Services. "The 'BB-' corporate credit rating on American Axle reflects the company's 'weak' business risk profile and 'aggressive' financial risk profile, which incorporate substantial exposure to the highly cyclical light- vehicle market," S&P said, as reported by the TCR on Sept. 6, 2012. As reported by the TCR on Sept. 5, 2013, Fitch Ratings has affirmed the 'B+' Issuer Default Ratings of American Axle & Manufacturing Holdings, Inc. (AXL) and its American Axle & Manufacturing, Inc. (AAM) subsidiary. The ratings and Positive Outlook for AXL and AAM are supported by Fitch's expectation that the drivetrain and driveline supplier's credit profile will strengthen over the intermediate term, despite some deterioration over the past year. AMERICAN RESOURCE: Files for Bankruptcy Amid Slowdown ----------------------------------------------------- Katy Stech, writing for Daily Bankruptcy Review, reported that American Resource Staffing, which places hundreds of workers into New England companies that need temporary help, filed for bankruptcy protection to deal with its growing tax bill. AMERICAN RESOURCE: Case Summary & Largest Unsecured Creditors ------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- American Resource Staffing Network, Inc. 14-11527 165 South River Road, Unit C Bedford, NH 03110 American Resource Network, Inc. 14-11529 165 South River Road Bedford, NH 03110 Chapter 11 Petition Date: July 31, 2014 Court: United States Bankruptcy Court District of New Hampshire (Manchester) Debtors' Counsel: Deborah A. Notinger, Esq. CLEVELAND, WATERS & BASS, P.A. 12 Murphy Drive, Suite 110 Nashua, NH 03062 Tel: (603) 966-3485 Email: notingerd@cwbpa.com - and - Steven M. Notinger, Esq. CLEVELAND, WATERS, AND BASS, P.A. Two Capital Plaza, 5th Floor PO Box 1137 Concord, NH 03302 Tel: 603-224-7761 Fax: 603-224-6457 Email: notingers@cwbpa.com Estimated Estimated Assets Assets ---------- ----------- American Resource Staffing $1MM-$10MM $10MM-$50MM American Resource Network $0-$50,000 $1MM-$10MM The petitions were signed by Richard Purtell, director. A list of American Resource Staffing's 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/nhb14-11527.pdf A list of American Resource Network's eight largest unsecured creditors is available for free at: http://bankrupt.com/misc/nhb14-11529.pdf ARAMID ENTERTAINMENT: Gets OK to Joint Administration of Cases -------------------------------------------------------------- The U.S. Bankruptcy Court approved Aramid Entertainment Fund Limited's motion for an order directing joint administration of related Chapter 11 Cases and authorizing the Debtors to file a consolidated list of creditors. The Chapter 11 cases are consolidated for procedural purposes only and shall be jointly administered by the Court under Case No. 14- 11802, the case number for Aramid Entertainment Fund Limited. The caption of the jointly administered cases shall read as: --------------------------------------------x In re: : Chapter 11 : Aramid Entertainment Fund Limited, et al., : Case No.: 14-11802 : (SHL) Debtors. : : (Jointly : Administered) --------------------------------------------x The Debtors shall maintain one consolidated docket, and one consolidated service list to be updated and filed with the Court and made available to the Clerk of the United States Bankruptcy Court for the Southern District of New York. The Debtors shall file a consolidated monthly operating report, but shall track disbursements on a debtor-by-debtor basis and shall list such disbursements on a debtor-by-debtor basis. The Debtors shall pay any fees due to the United States Trustee for Region 2 on a debtor-by-debtor basis. About Aramid Entertainment Aramid Entertainment Fund Limited has been engaged in the business of providing short and medium term liquidity to producers and distributors of film, television and other media and entertainment content by way of loans and equity investments. On May 7, 2014, Geoffrey Varga and Jess Shakespeare of Kinetic Partners (Cayman) Limited were appointed under Cayman law as the joint voluntary liquidators of AEF and two affiliates. On June 13, 2014, the JVLs authorized AEF and two affiliates to file for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-11802) in Manhattan on June 13, 2014. The Debtors have tapped Reed Smith, LLP, in New York, as counsel and Kinetic Partners (Cayman) Limited as crisis managers. AEF estimated at least $100 million in assets and between $10 million to $50 million in liabililities. ASPEN GROUP: Incurs $5.3 Million Net Loss in Fiscal 2014 -------------------------------------------------------- Aspen Group, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $5.35 million on $3.98 million of revenues for the year ended April 30, 2014. The Company reported a net loss of $1.40 million on $1.22 million of revenues for the four months ended April 30, 2013. 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 April 30, 2014, Aspen Group had $3.58 million in total assets, $5.36 million in total liabilities and a $1.78 million total stockholders' deficiency. Salberg & Company, P.A., did not issue a "going concern" qualification in its report on the consolidated financial statements for the year ended April 30, 2014. Salberg & Company previously expressed substantial doubt about the Company's ability to continue as a going concern in its report on the consolidated financial statements for the year ended 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. A full-text copy of the Form 10-K is available for free at: http://is.gd/BK9CvF 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. AUXILIUM PHARMACEUTICALS: To Get $10-Mil. in Milestone Payment -------------------------------------------------------------- Auxilium Pharmaceuticals, Inc. announced that the Company will receive a $10 million regulatory milestone payment from its partner Asahi Kasei Pharma Corporation (Asahi Kasei). The payment is due because of the successful submission of a regulatory application to the Japanese Pharmaceutical and Medical Device Agency (PMDA) for XIAFLEX(R) (collagenase clostridium histolyticum) for the treatment of Dupuytren's contracture (DC). The review by PMDA is expected to be completed by mid-2015. XIAFLEX is a biologic approved in the U.S., EU, Canada and Australia for the treatment of adult DC patients with a palpable cord and, in the U.S. for the treatment of adult men with Peyronie's disease (PD) with a palpable plaque and curvature deformity of at least 30 degrees at the start of therapy. "We are pleased to see our collaboration with Asahi Kasei advance XIAFLEX, if approved, as the potential first, effective non- surgical treatment option available in Japan for patients suffering from the debilitating effects of Dupuytren's contracture," said Adrian Adams, chief executive officer and President of Auxilium Pharmaceuticals. "This marks another important milestone in the continued expansion of XIAFLEX to a global patient population." In March 2011, Auxilium entered into a development, commercialization and supply agreement with Asahi Kasei. Under the agreement, Asahi Kasei was granted the exclusive right to commercialize XIAFLEX for the treatment of DC and PD in Japan upon receipt of applicable regulatory approvals. Asahi Kasei is primarily responsible for the clinical development, regulatory and commercialization activities for XIAFLEX in Japan. Auxilium is eligible to receive up to $247 million in potential payments, with $37 million tied to development and regulatory milestones and $210 million tied to achievement of aggregate annual net sales thresholds. As a consequence of the $10 million milestone payment being made on account of the successful PMDA submission, the remaining potential payments and payments tied to regulatory milestones are reduced from $247 million to $237 million and from $37 million to $27 million, respectively. In addition, Asahi Kasei will provide quarterly royalty payments based on tiered, double-digit percentages of the aggregate annual net sales of XIAFLEX in Japan. About Auxilium Auxilium Pharmaceuticals, Inc., is a fully integrated specialty biopharmaceutical company with a focus on developing and commercializing innovative products for specialist audiences. With a broad range of first- and second-line products across multiple indications, Auxilium is an emerging leader in the men's healthcare area and has strategically expanded its product portfolio and pipeline in orthopedics, dermatology and other therapeutic areas. Auxilium now has a broad portfolio of 12 approved products. Among other products in the U.S., Auxilium markets edex(R) (alprostadil for injection), an injectable treatment for erectile dysfunction, Osbon ErecAid(R), the leading device for aiding erectile dysfunction, STENDRATM (avanafil), an oral erectile dysfunction therapy, Testim(R) (testosterone gel) for the topical treatment of hypogonadism, TESTOPEL(R) (testosterone pellets) a long-acting implantable testosterone replacement therapy, XIAFLEX(R) (collagenase clostridium histolyticum or CCH) for the treatment of Peyronie's disease and XIAFLEX for the treatment of Dupuytren's contracture. The Company also has programs in Phase 2 clinical development for the treatment of Frozen Shoulder syndrome and cellulite. To learn more, please visit www.Auxilium.com. As of March 31, 2014, the Company had $1.19 billion in total assets, $985.73 million in total liabilities and $210.14 million in total stockholders' equity. * * * As reported by the TCR on May 7, 2014, Moody's Investors Service downgraded the ratings of Auxilium Pharmaceuticals, Inc., including the Corporate Family Rating to B3 from B2. "The downgrade reflects Moody's expectations that declines in Testim, Auxilium's testosterone gel, will materially reduce EBITDA in 2014, resulting in negative free cash flow, a weakening liquidity profile, and extremely high debt/EBITDA," said Moody's Senior Vice President Michael Levesque. In the May 6, 2014, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit rating on Auxilium Pharmaceuticals Inc. to 'CCC' from 'B-'. "Our rating action on Auxilium is predicated on our assessment of its liquidity profile as "weak" and our expectation that the company is likely to deplete its liquidity sources over the next 12 months," said credit analyst Maryna Kandrukhin. BERRY PLASTICS: Posts $15 Million Net Income in Third Quarter ------------------------------------------------------------- Berry Plastics Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to the Company of $15 million on $1.29 billion of net sales for the quarterly period ended June 28, 2014, as compared with net income attributable to the Company of $40 million on $1.22 billion of net sales for the quarterly period ended June 29, 2013. For the three quarterly periods ended June 28, 2014, the Company reported net income attributable to the Company of $33 million on $3.64 billion of net sales as compared with net income attributable to the Company of $31 million on $3.44 billion of net sales for the three quarterly periods ended June 29, 2013. As of June 28,2 014, the Company had $5.41 billion in total assets, $5.53 billion in total liabilities, $12 million in non- controlling interest and a $130 million total stockholders' deficit. "In the June 2014 quarter we reported record sales for any quarterly period in the Company's history, in the face of weak packaged food demand," said Jon Rich, Chairman and CEO of Berry Plastics. "We also matched our Operating EBITDA record for any quarterly period of $212 million." A full-text copy of the Form 10-Q is available for free at: http://goo.gl/mlSvsY About Berry Plastics Berry Plastics Corporation manufactures and markets plastic packaging products, plastic film products, specialty adhesives and coated products. At Jan. 2, 2010, the Company had more than 80 production and manufacturing facilities, primarily located in the United States. Berry is a wholly-owned subsidiary of Berry Plastics Group, Inc. Berry Group is primarily owned by affiliates of Apollo Management, L.P., and Graham Partners. Berry, through its wholly owned subsidiaries operates five reporting segments: Rigid Open Top, Rigid Closed Top, Flexible Films, Tapes/Coatings and Specialty Films. The Company's customers are located principally throughout the United States, without significant concentration in any one region or with any one customer. On Dec. 3, 2009, Berry Plastics obtained control of 100 percent of the capital stock of Pliant upon Pliant's emergence from reorganization pursuant to a proceeding under Chapter 11 for a purchase price of $602.7 million. Pliant is a leading manufacturer of value-added films and flexible packaging for food, personal care, medical, agricultural and industrial applications. The acquired business is primarily operated in Berry's Specialty Films reporting segment. * * * As reported by the TCR on Feb. 1, 2013, Moody's Investors Service upgraded the corporate family rating of Berry Plastics to B2 from B3 and the probability of default rating to B2-PD from B3-PD. The upgrade of the corporate family rating to B2 from B3 reflects the improvement in pro-forma credit metrics and management's publicly stated goal to pursue a less aggressive, more balanced financial profile. In November 2011, Standard & Poor's Ratings Services affirmed the 'B-' corporate credit rating on Berry and its holding company parent, Berry Plastics Group Inc. "The ratings on Berry reflect the risks associated with the company's highly leveraged financial profile and acquisition- driven growth strategy as well as its fair business risk profile," said Standard & Poor's credit analyst Cynthia Werneth. BIOFUEL ENERGY: Incurs $2.7 Million Net Loss in Second Quarter -------------------------------------------------------------- Biofuel Energy Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company's common stockholders of $2.75 million on $56,000 of revenues for the three months ended June 30, 2014, as compared with a net loss attributable to common stockholders of $4.12 million on $0 of revenues for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss attributable to the Company's common stockholders of $3.46 million on $156,000 of revenues as compared with a net loss attributable to the Company's common stockholders of $8.75 million on $0 of revenues for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $8.84 million in total assets, $1.40 million in total liabilities and $7.43 million in total equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/LiwTjj About Biofuel Energy Denver, Colo.-based BioFuel Energy Corp. (Nasdaq: BIOF) -- http://www.bfenergy.com/-- aims to become a leading ethanol producer in the United States by acquiring, developing, owning and operating ethanol production facilities. It currently has two 115 million gallons per year ethanol plants in the Midwestern corn belt. Biofuel Energy incurred a net loss of $45.65 million in 2013, a net loss of $46.32 million in 2012 and a net loss of $10.36 million in 2011. BIOFUELS POWER: Plans to Build Gas-to-Liquids Plant in Texas ------------------------------------------------------------ Biofuels Power Corporation has signed a letter of intent with ThyssenKrupp Industrial Solutions (Africa) (Pty) Ltd and Liberty GTL, Inc., to build a small-scale gas-to-liquid demonstration facility in Houston, Texas. The parties have established a non- binding target date to complete installation and commissioning of the GTL Pilot Plant on or before Dec. 31, 2014. The purpose of the GTL Pilot Plant is to commercially demonstrate converting stranded natural gas resources to synthetic crude oil. BFLS will operate the GTL Pilot Plant for the 2-year demonstration. ThyssenKrupp will provide technical services and contribute a previously operating auto-thermal reformer pilot plant of proven design, which will be used to generate synthesis gas feedstock for the production of synthetic crude oil. Liberty will provide intellectual property and operating know-how regarding crude oil synthesis along with the relevant catalyst supply. The Liberty technical team is also credited for designing the FT (Fischer Tropsch) Reactor which will convert the synthetic gas to synthetic crude oil. The GTL Pilot Plant will be assembled at the Houston Clean Energy Park, which is an industrial estate owned by BFLS. The abundant supply and low cost of natural gas produced from unconventional shale resources enhances the opportunity to profitably convert natural gas to higher value liquid fuels. The focus of the GTL Pilot Plant will be to optimize design and operability of small-scale gas-to-liquid facilities capable of converting 5 - 10 million cubic feet per day of natural gas into approximately 500 bbls per day of synthetic crude oil. Building on Liberty's previous engineering studies completed by ThyssenKrupp in 2013, BFLS and Liberty are in the process of completing engineering on a 500 bbls per day reference plant design with the goal of deploying multiple units in North America in the future. This process is scheduled to be completed in the coming weeks. The Company believes that gas to liquids projects of this size may be attractive to operating companies confronted with curtailing production or, in the extreme case, ceasing production due to capital cost barriers related to expansion of natural gas gathering, processing and transmission infrastructure. These "stranded gas wells" would be released for production if the planned GTL units could process the natural gas immediately after completion of the well. Eric Gadd, the Company's chief commercial officer said, "This GTL pilot project is an important milestone toward our goal of installing small scale GTL plants at stranded gas well sites. The pilot plant will prove the commercial viability of deploying small-scale GTL plants in North America. With an abundant natural gas resource base, future gas-to-liquids developments like this could fill a need in the energy industry for decades to come." Wayne Stocks, the president of Liberty stated, "Liberty has been through several years of extensive research and engineering studies and considers its IP, know-how and strategic relationships to be the key to unlock the considerable value in monetizing the abundant gas resources in North America. This plant will be a first for the United States and an important step to the future of clean fuels for the Nation. Liberty is proud to be associated with ThyssenKrupp and Biofuels Power and is truly excited to commercialize small-scale gas to liquids on a global scale." Biofuels Power Humble, Tex.-based Biofuels Power Corporation is a distributed energy company that is pioneering the use of biodiesel to fuel small electric generating facilities that are located in close proximity to end-users. BPC's first power plant is currently located near Houston, Texas in the city of Oak Ridge North. Biofuels Power reported a net loss of $606,556 on $0 of sales for the year ended Dec. 31, 2013, as compared with net income of $342,456 on $0 of sales in 2012. The Company's balance sheet at March 31, 2014, showed $1.21 million in total assets, $6.24 million in total liabilities and a $5.03 million total stockholders' deficit. Clay Thomas, P.C., in Abilene, Texas, 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 significant losses and will require additional capital to develop its business until the Company either (1) achieves a level of revenues adequate to generate sufficient cash flows from operations; or (2) obtains additional financing necessary to support its working capital requirements. These conditions raise substantial doubt about the Company's ability to continue as a going concern. BROADVIEW NETWORKS: Incurs $1.1 Million Net Loss in 2nd Quarter --------------------------------------------------------------- Broadview Networks Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.13 million on $76.41 million of revenues for the three months ended June 30, 2014, as compared with a net loss of $516,000 on $80.45 million of revenues for the same period during the prior year. For the six months ended June 30, 2014, the Company reported a net loss of $4.20 million on $154.02 million of revenues as compared with a net loss of $2.88 million on $161.25 million of revenues for the same period last year. As of June 30, 2014, the Company had $205.34 million in total assets, $201.33 million in total liabilities and $4 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/X6lvnH About Broadview Networks Rye Brook, N.Y.-based Broadview Networks Holdings, Inc., is a communications and IT solutions provider to small and medium sized business ("SMB") and large business, or enterprise, customers nationwide, with a historical focus on markets across 10 states throughout the Northeast and Mid-Atlantic United States, including the major metropolitan markets of New York, Boston, Philadelphia, Baltimore and Washington, D.C. Broadview Networks reported a net loss of $8.48 million in 2013, a net loss of $35.27 million in 2012 and a net loss of $11.9 million for 2011. * * * In the July 23, 2012, edition of the Troubled Company Reporter, Moody's Investors Service downgraded Broadview Networks Holdings, Inc. Corporate Family Rating (CFR) to Caa3 from Caa2 and the Probability of Default Rating (PDR) to Ca from Caa3 in response to the company's announcement that it has entered into a restructuring support agreement with holders of roughly 70% of its preferred stock and roughly 66-2/3% of its Senior Secured Notes. The company is expected to file a pre-packaged Chapter 11 Plan of Reorganization or complete an out of court exchange offer. As reported by the TCR on July 25, 2012, Standard & Poor's Ratings Services lowered its corporate credit rating on Broadview to 'D' from 'CC'. "This action follows the company's announced extension on its revolving credit facility. We expect to lower the issue- level rating on the notes to 'D' once the company files for bankruptcy, or if it misses the Sept. 1, 2012 maturity payment on the notes," S&P said. BUCCANEER ENERGY: Has Aug. 27 Plan Confirmation Hearing ------------------------------------------------------- Judge David Jones of the U.S. Bankruptcy Court for the Southern District of Texas, Victoria Division, on July 25, 2014, conditionally approved the disclosure statement explaining Buccaneer Resources, LLC, et al.'s First Amended Joint Chapter 11 Plan of Reorganization. The Disclosure Statement is conditionally approved as containing adequate information pursuant to Section 1125 of the Bankruptcy Code without prejudice to any party-in-interest, including the Official Committee of Unsecured Creditors, filing an objection to the Disclosure Statement no later than the Aug. 22, 2014. Completed original ballots to accept or reject the Plan must also be received on the same day. The Official Committee of Unsecured Creditors; AIMM Technologies, Inc., and All American Oilfield Associates, LLC, prepetition service providers to the Debtors; Cook Inlet Region, Inc.; have objected to the Disclosure Statement, complaining that the outline does not contain adequate information. The Creditors' Committee specifically complained on the Disclosure Statement's lack of adequate information with respect to the potential for distributions under the Plan. AIMM and AAOA specifically complain that the Disclosure Statement inadequately describes a liquidating Plan under which certain assets will be sold and the Disclosure Statement contains virtually no description of the assets that the Debtors intend to sell. A final hearing on approval of the Disclosure Statement will be combined with the confirmation hearing to be held on the Plan and the combined hearing is scheduled for Aug. 27, at 1:00 p.m. (Central Time). The Debtors sought conditional approval of the Disclosure Statement to expedite the solicitation procedures by reducing the required notice time for parties-in-interest under Rules 2002(b) and (d) and 3017(a) of the Federal Rules of Bankruptcy Procedure. The Plan is conditioned on, and will be consummated upon, the closing of the sale of the Kenai Loop Assets. A Liquidating Trust will be created to which all of the assets of the Debtors remaining after the sale will be transferred. Under the Plan, holders of general unsecured claims and subordinated claims are impaired. Interest holders are not expected to receive or retain anything under the Plan. A full-text copy of the First Amended Disclosure Statement dated July 25 is available at http://is.gd/ulzUa9 A full-text copy of the Disclosure Statement dated June 27 is available at http://is.gd/Yu3J4g The Creditors' Committee is represented by: Shari L. Heyen, Esq. David R. Eastlake, Esq. GREENBERG TRAURIG, LLP 1000 Louisiana, Suite 1700 Houston, TX 77002 Email: HeyenS@gtlaw.com EastlakeD@gtlaw.com -- and -- David B. Kurzweil, Esq. Lee B. Hart, Esq. GREENBERG TRAURIG, LLP Terminus 200 3333 Piedmont Road, NE, Suite 2500 Atlanta, GA 30327 Email: KurzweilD@gtlaw.com HartLe@gtlaw.com AIMM and AAOA is represented by: Philip G. Eisenberg, Esq. W. Steven Bryant, Esq. Brooke B. Chadeayne, Esq. LOCKE LORD LLP 600 Travis Street, Suite 2800 Houston, TX 77002 Tel: (713) 226-1489 Fax: (713) 229-2536 Email: peisenberg@lockelord.com sbryant@lockelord.com bchadeayne@lockelord.com CIRI is represented by: Robert L. Paddock, Esq. 333 Clay, Suite 3300 Houston, TX 77002 Tel: (713) 654-8111 Fax: (713) 654-1871 Email: Robert.Paddock@tklaw.com -- and -- Ira L. Herman, Esq. Jennifer A. Christian, Esq. THOMPSON & KNIGHT LLP 900 Third Avenue, 20th Floor New York, NY 10022 Tel: (212) 751-3001 Fax: (212) 751-3113 Email: Ira.Herman@tklaw.com jennifer.christian@tklaw.com About Buccaneer Energy Buccaneer Resources, LLC, and eight affiliates, including Buccaneer Energy Ltd. sought Chapter 11 bankruptcy protection in Victoria, Texas (Bankr. S.D. Tex. Lead Case No. 14-60041) on May 31, 2014. Buccaneer listed assets of up to $50,000 and liabilities between $50 million and $100 million in its petition. Founded in 2006, Buccaneer Energy, Ltd. is a publicly traded independent oil and gas company listed on the Australian Securities Exchange under the symbol "BCC". Although BCC is an Australian listed entity, the company operates exclusively through its eight U.S. subsidiary debtors, each of which are headquartered in the U.S. and which maintain offices in Houston and Dallas, Texas, and Kenai and Anchorage, Alaska. The Debtors' primary business is the exploration for and production of oil and natural gas in North America. Operations have historically focused on both onshore and offshore opportunities in the Cook Inlet of Alaska as well as the development of offshore projects in the Gulf of Mexico and onshore oil opportunities in Texas and Louisiana. CEO Curtis Burton was terminated in May 2014. Manning the Debtors' operations is Conway MacKenzie senior managing director John T. Young, who was appointed chief restructuring officer in March 2014. The bankruptcy cases are assigned to Judge David R Jones. The Debtors have sought and obtained an order authorizing joint administration of their Chapter 11 cases. The Debtors have tapped Robert Andrew Black, Esq., Jason Lee Boland, Esq., Robert Bernard Bruner, and William R Greendyke, Esq., at Fulbright Jaworski LLP as counsel. Norton Rose Fulbright Australia will render legal services related to cross-border insolvency and general corporate and litigation matters to Buccaneer Energy Ltd. Epiq Systems is the claims and notice agent. BUDD COMPANY: Court Extends Exclusive Period to August 29 --------------------------------------------------------- The Bankruptcy Court extends The Budd Company, Inc.'s exclusive period to file a Chapter 11 plan to August 29, 2014, and exclusive period to solicit acceptances of that plan to October 28, 2014. Budd Company originally sought a 90-day extension but, upon the objection of the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, the Court grants only a limited extension until the conclusion of a hearing on an affiliate settlement. After the conclusion of the affiliate settlement hearing, the Court will again reconsider the request to extend exclusivity. The exclusivity request is continued for hearing on August 22, 2014 at 1:30 p.m. On March 31, 2014, Budd Company filed a request to approve an affiliate settlement agreement pursuant to Section 105 of the Bankruptcy Code and Rule 9019 of the Federal Rules of Bankruptcy Procedure. The affiliate settlement request seeks approval of a settlement agreement between Budd Company and its corporate insiders. The hearing on the affiliate settlement request is scheduled to commence on August 28, 2014. UAW serves as the representative of Budd Company's UAW retirees under Section 1114 of the Bankruptcy Code. Retiree benefit and plan negotiations will be on hold until the settlement agreement has been considered by the Court. The Budd Company is represented by: Jeff J. Marwil, Esq. Jeremy T. Stillings, Esq. Brandon W. Levitan Proskauer Rose LLP 70 W. Madison St. Chicago, IL 60602-4342 Telephone: (312) 962-3550 Facsimile: (312) 962-3551 UAW is represented by: Lawrence B. Friedman, Esq. Lindsee P. Granfield, Esq. Mark A. Lightner, Esq. CLEARY GOTTLIEB STEEN & HAMILTON LLP One Liberty Plaza New York, NY 10006 Telephone: (212) 225-2000 Facsimile: (212) 225-3999 E-mail: lfriedman@cgsh.com - and - Scott R. Clar (06183741) Crane, Heyman, Simon,Welch & Clar 135 South LaSalle Street, Suite 3705 Chicago, IL 60603 Telephone: (312) 641-6777 Facsimile: (312) 641-7114 About The Budd Company The Budd Company, Inc., a former supplier to the automotive industry, filed for chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 14-11873) on March 31, 2014, with a deal to settle potential claims against its parent, ThyssenKrupp AG. The company -- which ceased manufacturing operations in 2006 and does not have any current employees, facilities or customers -- has obligations consisting largely of medical and other benefits to approximately 10,000 former employees. Liabilities amount to approximately $1 billion with assets of approximately $400 million. Most of the debt consists largely of medical and other benefits to approximately 10,000 former employees. The Debtor disclosed $387,555,681 in assets and $1,107,350,034 in liabilities as of the Chapter 11 filing. The Hon. Jack B. Schmetterer oversees the case. The Debtor has tapped Proskauer Rose LLP as Chapter 11 counsel, Dickinson Wright PLLC as special counsel, Epiq Bankruptcy Solutions, LLC as noticing, claims and balloting agent, and Conway MacKenzie Management Services, LLC's Charles M. Moore as CRO. The U.S. Trustee appointed five individuals to serve on the Committee of Executive & Administrative Retirees. The Segal Company (Eastern States), Inc. serves as the Committee's actuarial consultant. The Committee retained Solic Capital Advisors, LLC as its financial advisor. Reed Heiligman, Esq., at FrankGecker LLP, in Chicago, Illinois, represents the ad hoc committee of asbestos personal injury claimants. BUDD COMPANY: Court Appoints Diana Adams as Fee Examiner -------------------------------------------------------- The Bankruptcy Court, upon recommendation of the U.S. Trustee, appoints Diana G. Adams as independent fee examiner. As independent fee examiner, Ms. Adams will review and assess all applications filed by retained professionals, and the fees and reimbursement of expenses for which allowance is sought, for compliance with the Bankruptcy Code, Federal Rules of Bankruptcy Procedure, and applicable Court orders. Ms. Adams is further authorized to: (a) File a report or assessment on the public docket of regarding any application by a retained professional for the Court's consideration of the application and may appear and answer questions with respect to the report; (b) Communicate her concerns regarding any application to the retained professionals to whom the application pertains, and request further information as appropriate; (c) Establish procedures for the resolution of disputes with retained professionals; (d) Recommend procedures to facilitate the preparation and review of applications; (e) Appear and be heard on any matter before the Court pertaining to the independent fee examiner's review of the applications; and (h) Retain, subject to Court approval, professionals to represent or assist the independent fee examiner in connection with any of the foregoing. Budd Company, its retirees' representatives, the U.S. Trustee, and all retained professionals will cooperate with the independent fee examiner in the discharge of her duties and will promptly respond to any reasonable request for information or communications. Attorneys for Patrick S. Layng, U.S. Trustee, are: Kathryn Gleason Roman L. Sukley Office of the U.S. Trustee 219 S. Dearborn St., Room 873 Chicago, IL 60604 About The Budd Company The Budd Company, Inc., a former supplier to the automotive industry, filed for chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 14-11873) on March 31, 2014, with a deal to settle potential claims against its parent, ThyssenKrupp AG. The company -- which ceased manufacturing operations in 2006 and does not have any current employees, facilities or customers -- has obligations consisting largely of medical and other benefits to approximately 10,000 former employees. Liabilities amount to approximately $1 billion with assets of approximately $400 million. Most of the debt consists largely of medical and other benefits to approximately 10,000 former employees. The Debtor disclosed $387,555,681 in assets and $1,107,350,034 in liabilities as of the Chapter 11 filing. The Hon. Jack B. Schmetterer oversees the case. The Debtor has tapped Proskauer Rose LLP as Chapter 11 counsel, Dickinson Wright PLLC as special counsel, Epiq Bankruptcy Solutions, LLC as noticing, claims and balloting agent, and Conway MacKenzie Management Services, LLC's Charles M. Moore as CRO. The U.S. Trustee appointed five individuals to serve on the Committee of Executive & Administrative Retirees. The Segal Company (Eastern States), Inc. serves as the Committee's actuarial consultant. The Committee retained Solic Capital Advisors, LLC as its financial advisor. Reed Heiligman, Esq., at FrankGecker LLP, in Chicago, Illinois, represents the ad hoc committee of asbestos personal injury claimants. BUDD COMPANY: Claimants Defer Filing Asbestos Claim Form -------------------------------------------------------- The Budd Company, Inc., sought to require some, but not all of its creditors to file proofs of claim by October 15, 2014. Reed Heiligman, Esq., at FrankGecker LLP, in Chicago, Illinois, counsel to an ad hoc committee of asbestos personal injury claimants, tells the Bankruptcy Court that without filing a plan or giving any other indication of how it intends to treats its asbestos victims, Budd Company sought to approve a 22-page proof of claim form to be completed only by the unfortunate victims of asbestos. Mr. Heiligman contends that the asbestos claim form request is premature, as appointment of an official committee of asbestos personal injury claimants has been ordered by the Court, but has not yet occurred. The official asbestos creditors committee, when formed, should be given an opportunity to respond to the overreach, notes Mr. Heiligman. Accordingly, the ad hoc committee of asbestos personal injury claimants asks the Court that the asbestos claim form request should be continued for status with a briefing schedule to be determined after the formation of the official asbestos creditors committee. Mr. Heiligman points out that deficiencies in the asbestos claim form request could potentially be addressed by an official committee, including that: (a) The proposed asbestos proof of claim does not "conform substantially" with Official Form No. 10 as Rule 3001(a) of the Federal Rules of Bankruptcy Procedure requires; (b) The proposed 22-page asbestos proof of claim form seeks information far beyond the requirements for a prima facie valid proof of claim under the Bankruptcy Rules; and (c) Budd Company refuses to give its asbestos victims the same consideration as its retirees. The ad hoc committee is represented by: Frances Gecker, Esq. Joseph D. Frank, Esq. Reed Heiligman, Esq. FRANKGECKER LLP 325 North LaSalle Street, Suite 625 Chicago, IL 60654 Telephone: (312) 276-1400 Facsimile: (312) 276-0035 E-mail: fgecker@fgllp.com jfrank@fgllp.com rheiligman@fgllp.com About The Budd Company The Budd Company, Inc., a former supplier to the automotive industry, filed for chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 14-11873) on March 31, 2014, with a deal to settle potential claims against its parent, ThyssenKrupp AG. The company -- which ceased manufacturing operations in 2006 and does not have any current employees, facilities or customers -- has obligations consisting largely of medical and other benefits to approximately 10,000 former employees. Liabilities amount to approximately $1 billion with assets of approximately $400 million. Most of the debt consists largely of medical and other benefits to approximately 10,000 former employees. The Debtor disclosed $387,555,681 in assets and $1,107,350,034 in liabilities as of the Chapter 11 filing. The Hon. Jack B. Schmetterer oversees the case. The Debtor has tapped Proskauer Rose LLP as Chapter 11 counsel, Dickinson Wright PLLC as special counsel, Epiq Bankruptcy Solutions, LLC as noticing, claims and balloting agent, and Conway MacKenzie Management Services, LLC's Charles M. Moore as CRO. The U.S. Trustee appointed five individuals to serve on the Committee of Executive & Administrative Retirees. The Segal Company (Eastern States), Inc. serves as the Committee's actuarial consultant. The Committee retained Solic Capital Advisors, LLC as its financial advisor. Reed Heiligman, Esq., at FrankGecker LLP, in Chicago, Illinois, represents the ad hoc committee of asbestos personal injury claimants. BUILDERS FIRSTSOURCE: Files Form 10-Q, Earns $10.6-Mil. in Q2 ------------------------------------------------------------- Builders Firstsource, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $10.60 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 last year. The Company's balance sheet at June 30, 2014, showed $546.47 million in total assets, $521.92 million in total liabilities and $24.55 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/Gml95J 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. BRAUN DEVELOPMENT: Case Summary & 15 Unsecured Creditors -------------------------------------------------------- Debtor: Braun Development Group, Inc. dba Artwear 13621 S. Main Street Los Angeles, CA 90061 Case No.: 14-24711 Chapter 11 Petition Date: July 31, 2014 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Hon. Ernest M. Robles Debtor's Counsel: M Jonathan Hayes, Esq. SIMON RESNIK HAYES LLP 15233 Ventura Blvd Ste 250 Sherman Oaks, CA 91403 Tel: 818-783-6251 Fax: 818-783-6253 Email: jhayes@srhlawfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $100,000 to $500,000 The petition was signed by Lynn Braun, president. A list of the Debtor's 15 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb14-24711.pdf BWAY HOLDING: S&P Lowers CCR to 'B-' on Dividend Recap ------------------------------------------------------ Standard & Poor's Ratings Services lowered its corporate credit rating on Atlanta-based BWAY Holding Co. and all related rated entities, including BOE Intermediate Holding Corp., BWAY Parent Co. Inc., and BWAY Corp. (collectively, BWAY), to 'B-' from 'B'. The outlook is stable. At the same time, S&P assigned a 'B-' issue-level rating to the company's proposed $1.1 billion senior secured term loan. The recovery rating is '3', indicating S&P's expectation of meaningful recovery (50% to 70%) in the event of payment default. S&P also assigned a 'CCC' issue-level rating to the company's proposed $770 million senior unsecured notes due 2021. The recovery rating is '6', indicating S&P's expectation of negligible recovery (0% to 10%) in the event of payment default. As a part of this transaction, S&P is also assigning a 'B+' issue- level rating to the company's existing $200 million asset-backed lending (ABL) facility. The recovery rating is '1', indicating S&P's expectation of very high recovery (90% to 100%) in the event of payment default BWAY Holding Co. is issuing a $1.1 billion senior secured term loan and $770 million of senior unsecured notes. The company will use the $1.87 billion gross proceeds primarily to repay its existing term loan, senior notes, and pay-in-kind (PIK) notes and to pay a $200 million dividend to its shareholders. "The downgrade to 'B-' reflects increased leverage and a deterioration in credit measures after the proposed transaction," said Standard & Poor's credit analyst Henry Fukuchi. "We expect leverage to rise to more than 8x with incremental debt of about $310 million after the proposed transaction. Although we expect better operating trends, we think leverage will remain elevated above 7x for the next few quarters. A combination of improving housing markets, various cost-reduction efforts, and manufacturing efficiencies should support improving operating trends and modest deleveraging within the next year". S&P characterizes BWAY's business risk profile as "fair" and its financial risk profile as "highly leveraged," which results in an anchor of 'b'. S&P applies a negative comparable rating analysis modifier, resulting in a lower corporate credit rating (to 'B-') due to the elevated level of leverage compared to its peers. The ratings on BWAY reflect exposure to volatile resin costs, and key industry risks, such as exposure to housing and industrial end markets. The company's good profitability and cash flow, market share gains from past acquisitions, benefits from plant rationalizations, favorably structured contracts, and cost- reduction efforts partly offset these weaknesses. The ratings also incorporate the aggressive financial policies of the company's owners, which S&P believes will continue to keep the financial risk profile highly leveraged. The outlook is stable. S&P believes BWAY's predictable profitability, sustainable synergies achieved from the Ropak acquisition, moderate free cash flow, and adequate liquidity should support the current ratings. The stable outlook also factors in S&P's expectation that very aggressive financial policies related to the current owners will keep leverage elevated despite some modest improvement in operating trends. S&P's expectation at the current rating includes adjusted debt to EBITDA in the range of 7.0x to 8.5x and sufficient availability under its revolver supporting adequate liquidity. "We could consider a modest upgrade if the company can improve its adjusted debt to EBITDA ratio to below 7.0x and sustain it at that level as well as approach future growth spending and shareholder distributions in a credit-supportive manner. This could happen if EBITDA margins increase about 100 basis points and revenues grow by more than five percentage points from our expectations. The company could achieve this improvement as a result of efficiency initiatives, pricing gains, and the easing raw material cost pressures, along with a favorable recovery in the housing market. For an upgrade, we would also need evidence that future financial policy decisions will support an improved financial risk profile," S&P noted. S&P could lower the ratings if operating performance deteriorates significantly from the current levels such that free cash generation becomes negative and the company fails to meet its ongoing operation needs. A deterioration in operating performance could result from sharp increases in raw material costs or weaker demand in key end markets. In such a scenario, EBITDA margins could decrease by more than 200 basis points or revenue could decline by more than 10% from S&P's expectations. A downgrade is also possible if liquidity deteriorates or leverage increases to the high-8x area with no clear prospects of improvement. CAESARS ENTERTAINMENT: Fitch Raises Secured Debt Rating to CCC+ --------------------------------------------------------------- Fitch Ratings has upgraded Caesars Entertainment Operating Company. Inc.'s (CEOC) senior secured credit facility to 'CCC+/RR1' from 'CCC/RR2' following the finalization of the new guarantee and pledge agreement. The agreement caps the amount of debt that Caesars Entertainment Corp (CEC; Caesars, parent) may guarantee at $8.35 billion. In addition, Fitch has also affirmed CEOC's first-lien notes at 'CCC/RR2', and the more junior tranches at 'C/RR6', although the recovery rating (RR) on the junior tranches has been revised to 'RR6' from 'RR5'. The Issuer Default Ratings (IDRs) for CEOC and CEC were affirmed at 'CC'. KEY RATING DRIVERS The upgrade of the senior secured credit facility reflects CEOC's new guarantee and pledge agreement, which caps the amount of debt that CEC may guarantee at $8.35 billion relative to approximately $5.3 billion of term loans and $19 billion of total debt outstanding at CEOC. The new agreement, plus the reduced risk that CEC may attempt to release the guarantee from the credit facility, strengthens the credit facility's recovery prospects with respect to the guarantee. Fitch estimates that in an event CEOC files for bankruptcy the credit facility lenders' recovery will exceed 91%. The 91% or greater recovery estimate takes into account roughly 70% recovery derived from the CEOC collateral alone and 20% or greater recovery from the parent guarantee. This does not assume any paydown of the term loans using the $2.8 billion of excess cash on hand at CEOC including the $1.8 billion in proceeds from the recent asset sale to Caesars Growth Partners (CGP). CEOC's newly amended credit agreement exempts the CGP asset sale from the paydown requirements but CEOC's secured note indentures still require CEOC to either prepay first-lien debt or reinvest the proceeds within 15 months. The affirmation of the first-lien notes at 'CCC/RR2' reflects Fitch's recovery estimate for this debt at roughly 70%, which is borderline 'RR2' (71% - 90% recovery) and RR3 (51% - 70%) without the guarantee. The prospect of the first-lien notes receiving a portion of the parent guarantee or CEOC prepaying debt using the CGP asset sale proceeds increases the cushion for the first-lien notes within the RR2 band. The guarantee and pledge agreement permits CEC to grant the guarantee on up to $3 billion of incremental debt in addition to the $5.3 billion of the term loans outstanding. Fitch believes Caesars may use this capacity as an incentive when negotiating restructuring terms, seeking consents for further amendments or issuing additional first-lien debt (new credit agreement has a $500 million accordion option). The ambiguous nature of the indenture provisions CEC relied on to release the guarantee on CEOC's notes may strengthen the noteholders' leverage when negotiating restructuring or amendment terms or attempting to extract more meaningful concessions in an event of an in-court restructuring. There is also a possibility of a court reversing the guarantee release although putting a probability on this scenario is difficult. The downward revision of the RRs on the more junior notes reflects increased uncertainty that these tranches will be able to recover 11% or more (RR5 range is 11% - 30%) based on the parent guarantee alone in a bankruptcy scenario now that the B7 term loan is closed and the new credit agreement and the guarantee and pledge agreement are finalized. Fitch estimates 0% recovery for these tranches based on the CEOC collateral alone. These tranches could still realize some recovery based on the guarantee consideration discussed above, but likely no higher than around 20%, which would equate to a weak RR5 recovery rating. PARENT GUARANTEE RELEASE Caesars released the CEOC notes' parent guarantee by selling 5% of CEOC to third-party investors. Caesars offered the guarantee to the B7 term loan lenders and kept the guarantee for the existing term loan lenders that agreed to amend the credit agreement. The guarantee release is pursuant to the CEOC's note indentures' provision that states that the guarantee will be released if CEOC ceases to be a wholly-owned subsidiary of Caesars. Fitch believes that the language that Caesars relied on for the guarantee release is ambiguous and can potentially be challenged by the noteholders (second-lien noteholders' notice of default cited the' release as of one of the default triggers). With respect to the pre-LBO notes, 'wholly-owned subsidiary' in the relevant provision directs the readers to SEC's Regulation S-X (17 CFR part 210) definitions, which defines the term as 'subsidiary substantially all of whose outstanding voting shares are owned by its parent'. It is unclear if selling 5% of CEOC's stock meets the 'substantially all' threshold. With respect to the post-LBO notes, the provision that allows the release of the guarantee upon CEOC ceasing to be wholly-owned is adjoined to two other provisions that Caesars did not meet with the word 'and'. CEC's market capitalization of around $2.5 billion is a good proxy for the value of the guarantee. Fitch believes that Caesars Entertainment Resort Properties (CERP) contributes roughly $700 million of the value and CGP $1.8 billion. CEOC DEFAULT IS LIKELY NEAR Fitch believes that CEOC will attempt to execute a debt-for-equity exchange with the second-lien holders in the near term. According to a Bloomberg article Caesars hired Kirkland & Ellis to help in its restructuring talks. The second-lien's elevated price relative to recovery prospects is hampering CEOC's exchange efforts. At mid-30s the price is likely too high to enable CEOC to execute a meaningful exchange without utilizing CEC's equity in healthier subsidiaries. Since the sale of 5% of CEOC's equity to unaffiliated investors in May CEC may look to offer equity in CEOC to the second-lien holders. CEOC is about 12x leveraged through the first-lien and therefore equity beyond the first lien is minimal. At current prices CEOC's second-lien notes are valued at $2.1 billion. Second-lien prices could be elevated due to the second-lien holders' positions in 1-year CEOC credit default swaps, which are trading at above 5,000 basis points spread compared to below 2,000 basis points in early May. In order to execute an exchange CEOC would have to find a way to trigger the CDS without cross-defaulting the entire capital structure ($150 million is the cross-default threshold in most debt documents). Alternatively, CEOC would have to sweeten the exchange by prepaying a portion of second-liens with cash on hand (may require consent from the first-lien holders) and/or offering equity in the parent. Assuming CEC is unable to execute an exchange CEOC may elect to go the bankruptcy route, which could potentially be less dilutive relative to an exchange now that the guarantee has been released on the notes, if the guarantee release is upheld. Assuming CEOC can execute an exchange Fitch believes that CEOC has enough levers to get through 2016 and possibly 2017. Pro forma for a full exchange, including the 12.5% notes, CEOC will save $550 million in annual interest expense and will have roughly $2.8 billion in excess cash (cash net of cage cash and pro forma for the CGP sale as of March 31, 2014). Annual FCF burn will be reduced to roughly $400 million - $500 million or possibly lower in event operating conditions improve. Maturities below the first-lien include $1.1 billion of unsecured notes in 2016 and $539 million of unsecured notes in 2017. CEOC can potentially refinance the $2.1 billion in 11.25% first-lien notes maturing 2017 using the available parent guarantee capacity as an incentive. RATING SENSITIVITIES An upgrade of CEOC's IDR is unlikely at this point without a meaningful reduction in debt burden, which in Fitch's view, cannot be accomplished without some sort of a restructuring transaction. A downgrade to 'C' would signify that Fitch believes that a default at CEOC is imminent. This could potentially follow solicitations for a debt-for-equity exchange, which if executed would result in a downgrade to 'RD'. Shortly after the exchange is completed, the IDR will be re-visited and raised to a level consistent with the pro forma capital structure. A bankruptcy filing would result in a downgrade to 'D'. Fitch takes the following rating actions: Caesars Entertainment Corp. -- Long-term IDR affirmed at 'CC'. Caesars Entertainment Operating Co. -- Long-term IDR affirmed at 'CC'; -- Senior secured first-lien revolving credit facility and term loans upgraded to 'CCC+/RR1' from 'CCC/RR2'; -- Senior secured first-lien notes affirmed at 'CCC/RR2'; -- Senior secured second-lien notes affirmed at 'C/RR6'; RR revised to RR6 from RR5; -- Senior unsecured notes with subsidiary guarantees affirmed at 'C/RR6'; RR revised to RR6 from RR5; -- Senior unsecured notes without subsidiary guarantees affirmed at 'C/RR6'; RR revised to RR6 from RR5. Fitch currently rates the other CEC entities, which includes: Caesars Entertainment Resort Properties, LLC -- IDR 'B-'; Outlook Stable; -- Senior secured first-lien credit facility 'B+/RR2'; -- First-lien notes 'B+/RR2'; -- Second-lien notes 'CCC/RR6'. Caesars Growth Properties Holdings, LLC -- IDR 'B-'; Outlook Stable; -- Senior secured first-lien credit facility 'BB-/RR1'; -- Second-lien notes 'B-/RR4'. Corner Investment PropCo, LLC -- Long-term IDR 'CCC'; -- Senior secured credit facility 'B-/RR2'. Chester Downs and Marina LLC (and Chester Downs Finance Corp as co-issuer) -- Long-term IDR 'B-'; Outlook Negative; -- Senior secured notes 'BB-/RR1'. CAESARS ENTERTAINMENT: Bank Debt Trades at 7% Off ------------------------------------------------- Participations in a syndicated loan under which Caesars Entertainment Inc. is a borrower traded in the secondary market at 93.00 cents-on-the-dollar during the week ended Friday, Aug. 1, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an decrease of 0.88 percentage points from the previous week, The Journal relates. Caesars Entertainment Inc. pays 525 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 1, 2018, and carries Moody's Caa2 rating and Standard & Poor's CCC- 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. CDW LLC: S&P Assigns 'B' Rating to $600MM Sr. Unsecured Notes ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' issue-level rating and '6' recovery rating to value-added IT solutions provider CDW LLC's proposed $600 million senior unsecured notes due 2022. The '6' recovery rating indicates S&P's expectation for negligible (0%-10%) recovery in the event of a payment default. At the same time, S&P revised the recovery rating on CDW's senior secured debt to '2', indicating its expectation for substantial (70% to 90%) recovery in the event of a payment default, from '3'. S&P subsequently raised the issue-level rating on this debt to 'BB' from 'BB-', in accordance with its notching criteria. S&P expects the company to use proceeds from the proposed unsecured notes to redeem the balance of the 8% senior secured notes and to redeem a portion of the outstanding 8.5% senior unsecured notes. S&P's 'BB-' corporate credit rating on CDW remains unchanged. The outlook is positive. RATINGS LIST CDW LLC Corporate Credit Rating BB-/Positive/-- New Rating CDW LLC Senior Unsecured $600M notes due 2022 B Recovery Rating 6 Recovery Ratings Revised; Ratings Raised To From CDW LLC Senior Secured BB BB- Recovery Rating 2 3 CHARTER COMMUNICATIONS: S&P Rates New $8.9BB Secured Loans 'BB+' ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned Charter Communications Operating LLC's (CCO) proposed $8.9 billion senior secured credit facilities an issue-level rating of 'BB+', with a recovery rating of '1'. The '1' recovery rating indicates S&P's expectation for very high (90%-100%) recovery in the event of payment default. The facilities will consist of an incremental $500 million revolver due 2018, a $1 billion term loan A-2 due 2020, a $3.2 billion term loan G due 2021, and a $4.2 billion term loan H due 2022. At the same time, S&P lowered the issue-level rating on CCO Holdings LLC's senior unsecured debt to 'B' from 'BB-' and revised the recovery rating to '6' from '3'. The '6' recovery rating indicates S&P's expectation for negligible (0%-10%) recovery in the event of payment default. The lower issue-level rating reflects the increase in secured debt, which dilutes recovery prospects for unsecured creditors. All borrowers are subsidiaries of Stamford, Conn.-based cable provider Charter Communications Inc. (Charter). The company will use proceeds from the term loans to fund the $8.1 billion acquisition of about 1.5 million subscribers from Comcast following its purchase of Time Warner Cable, and to pay about $300 million of related fees and expenses. Charter will net about 1.4 million video customers following the swap of certain properties with Comcast. "Our corporate credit rating on the company is 'BB-'. The outlook is stable. Debt leverage will increase only modestly and the transaction, along with the asset swap and expected stake in Spinco, will offer some operational and scale benefits. Pro forma for the acquisition, we expect leverage of about 5x, only a small increase from the 4.7x metric we anticipated for 2014, and still supportive, albeit at the high end, of our "aggressive" financial risk assessment. We expect Charter to benefit from increased scale economies from the approximate 30% increase in video customers. In addition to the acquisition, the company is swapping about 1.5 million subscribers with Comcast, which should improve Charter's operational clustering, penetration levels, and regional market presence. Despite these benefits, we are not revising our business risk profile on the company, which we view as "satisfactory"," S&P said. RATINGS LIST Charter Communications Inc. Corporate Credit Rating BB-/Stable/-- New Rating Charter Communications Operating LLC Senior Secured $500M revolver due 2018 BB+ Recovery Rating 1 $1B term loan A-2 due 2020 BB+ Recovery Rating 1 $3.2B term loan G due 2021 BB+ Recovery Rating 1 $4.2B term loan H due 2022 BB+ Recovery Rating 1 Downgraded; Recovery Rating Revised To From CCO Holdings LLC Senior Unsecured B BB- Recovery Rating 6 3 CLEAREDGE POWER: Seeks Extension of Exclusivity Periods ------------------------------------------------------- Clearedge Power has requested that Hon. Charles Novack extend its exclusive period for filing and soliciting a Plan of Reorganization in its chapter 11 case in the Bankruptcy Court for the Northern District of California, San Jose Division. The Debtor is seeking a three-month extension to December 1, 2014 to file its Plan and to January 28, 2015 to seek acceptances of the Plan. The Debtor filed its chapter 11 petition on May 1, 2014, and has since sold most of its assets to Doosan Corp. The Debtor contends that there is "cause" for the extension pursuant to Sec. 1121(d) of the Bankruptcy Code based on the factors enumerated in the case of In re Express One International, Inc. 194 B.R. 98 (Bankr. E.D. Tex. 1996). The Debtor points out that its case is large and complex with over 1,500 creditors, equity holders, and parties in interest; $67 million in liabilities; and offices both in the U.S. and abroad. The Debtor contends that the fact that less than three months have elapsed since the petition date and that this is its first request for an extension weigh in favor of an extension. Additionally, the Debtor argues that the consummation of the sale of its assets, its timely filing of statements and schedules, and its cooperation with the U.S. Trustee, all illustrate that good faith progress is being made in the case. The Debtor anticipates filing a Plan soon after the close of the sale to Doosan. The Debtor is also paying obligations as they become due, and has made progress in its negotiations with creditors. The Debtor argues that the existence of these factors necessitates an extension in this case. The Debtor's request was filed by Thomas R. Hwang, Esq. at Dorsey & Whitney LLP of Palo Alto, CA. About ClearEdge Power Sunnyvale, California-based ClearEdge Power Inc. and two other affiliates filed for Chapter 11 bankruptcy protection (Bankr. N.D. Cal. Lead Case No. 14-51955) on May 1, 2014, in San Jose. Affiliates ClearEdge Power, LLC, and ClearEdge Power International Service, LLC, are based in South Windsor, Connecticut, where the manufacturing operations are located. Privately held ClearEdge designs, manufactures, sells and services distributed generation fuel cell systems for commercial, industrial, utility and residential applications. ClearEdge bought United Technologies Corp.'s UTC Power division in late 2012. ClearEdge sought bankruptcy protection just a week after shutting operations. John Walshe Murray, Esq., at Dorsey and Whitney LLP, serves as counsel to the Debtors. Insolvency Services Group, Inc., serves as noticing and claims agent. Gerbsman Partners was hired to assist in the asset sale. ClearEdge Power disclosed $31,271,670 in assets and $67,414,779 in liabilities as of the Chapter 11 filing. Power Inc. estimated $100 million to $500 million in both assets and debts. The petitions were signed by David B. Wright, chief executive officer. On May 22, 2014, the U.S. Trustee for Region 17 appointed five creditors to serve in the Committee. The Committee has hired Brown Rudnick as Counsel and Teneo Securities as financial advisors. COLOR STAR GROWERS: Seeks Extension of Solicitation Period ---------------------------------------------------------- Color Star Growers of Colorado, Inc. has requested an extension to its exclusive period for soliciting acceptances to a Plan of Reorganization in its chapter 11 case in the Bankruptcy Court for the Eastern District of Texas, Sherman Division. Since the petition date, the Debtor has continued to operate as a debtor-in- possession. In January 2014, the Debtor sold substantially all of its assets at auction. In June, the Debtor entered into a settlement with its lenders and the Official Committee of Unsecured Creditors regarding disputes that were hindering the formulation of a Plan. On June 13, 2014, the Debtors filed their first Joint Plan of Liquidation. The Debtors intend on amending the Plan to conform it to the terms of the settlement between the Settling Parties. On June 17, the Court entered its Order which, among other things, extended the Solicitation Exclusivity Period to August 12, 2014. On July 18, at a hearing on the settlement, the Court approved the settlement among the Parties. Also at that hearing, the Court discussed the plan process and counsel for the Debtors informed the Court of the Debtors' intention to seek this extension, and no parties objected. If granted, this third extension would extend the Debtor's solicitation period to October 9. A hearing on the Debtor's request is scheduled for August 25th in Plano, TX before Hon. Brenda T. Rhoades. The Debtor is represented by Marcus A. Helt, Esq. and Evan R. Baker, Esq. at Gardere, Wynne, & Sewell LLP of Dallas, TX. About Color Star Color Star, a grower and wholesaler of flowers and nursery stock with greenhouses and distribution centers in Colorado, Missouri and Texas, filed for Chapter 11 bankruptcy protection in December 2013. Color Star Growers of Colorado, Inc., and two affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Tex. Case Nos. 13-42959 to 13-42961) on Dec. 15, 2013, in Sherman, Texas. The petitions were signed by Brad Walker, chief restructuring officer. The Debtors estimated assets of at least $10 million and liabilities of at least $50 million. Marcus A. Helt, Esq., and Evan R. Baker, Esq., at Gardere Wynne Sewell LLP, serve as the Debtors' counsel. Simon, Ray & Winikka LLP serves as special conflicts counsel. SSG Advisors, LLC provides investment banking services, and UpShot Services LLC serves as claims, noticing and balloting agent. The Official Committee of Unsecured Creditors appointed in the Debtors' cases retained Gavin/Solmonese, LLC as financial advisors; and Raymond J. Urbanik, Esq., Deborah M. Perry, Esq., Thomas Berghman, Esq., and Isaac J. Brown, Esq., at Munsch Hardt Kopf & Harr, PC as attorneys. CPI BUYER: S&P Assigns 'B' CCR & Rates $260MM Facility 'B' ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to CPI Buyer LLC. At the same time, S&P assigned a 'B' issue-level rating with a '3' recovery rating to the new $260 million first-lien credit facility, which includes an undrawn $20 million revolving credit line. The '3' recovery rating reflects S&P's expectation for meaningful (50%-70%) recovery in the event of a payment default. S&P also assigned a 'CCC+' issue-level rating with a '6' recovery rating to the new $107 million second- lien credit facility. The '6' recovery rating reflects S&P's expectation for negligible (0%-10%) recovery in the event of a payment default. "Our business risk profile assessment reflects CPI's relatively small size, differentiated but narrow business focus, and its niche position in a large space that is dominated by large competitors like Thermo Fisher Scientific Inc., VWR, Bio-Rad Laboratories Inc., and PerkinElmer Inc.," said credit analyst Maryna Kandrukhin. "These weaknesses are only partially offset by CPI's leading market position within its niche space, adequate diversity profile, and above average profitability. Overall we categorize the company's business risk profile as "weak"." The stable rating outlook reflects S&P's expectation that CPI will execute on its stand-alone strategy with minimal disruption to its business and modest stand-alone costs. S&P forecasts single-digit revenue growth, positive cash flow generation and adjusted debt leverage above 5x over the next 12 months. Downside Scenario S&P would consider lowering the rating if the company is at risk of generating positive discretionary cash flow. S&P estimates that a 5% drop in revenue and about 400 bps in EBITDA margin contraction would result in cash flow below $10 million. At that point, leverage would exceed 8x and the interest coverage ratio would fall below 2x. This could happen if CPI loses its leading market position in low flow scientific applications space as a result of competitive and/or technological developments. Such a scenario would encompass a significant dip in revenues for the company's higher margin proprietary product and subsequent reduction in sales for consumables, pressuring margins. Upside Scenario While unlikely over the next 12 months, S&P could raise its corporate credit rating on CPI if the company sustains a debt-to- EBITDA ratio at around 4.5x and its FFO-to-debt ratio above 12%. This scenario would require an increase in EBITDA of about 50%. S&P's belief that the financial sponsor is committed to sustaining the company's leverage in that range would be a prerequisite for an upgrade. CROWN MEDIA: Posts $16 Million Net Income in Second Quarter ----------------------------------------------------------- Crown Media Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to common stockholders of $15.96 million on $97.35 million of net total revenue for the three months ended June 30, 2014, as compared with net income attributable to common stockholders of $16.51 million on $89.47 million of net total revenue for the same period in 2013. For the six months ended June 30, 2014, the Company posted net income attributable to common stockholders of $28 million on $188.02 million of net total revenue as compared with net income attributable to common stockholders of $31.04 million on $175.03 million of net total revenue for the same period last year. As of June 30, 2014, the Company had $1.05 billion in total assets, $625.24 million in total liabilities and $427.14 million in total stockholders' equity. "During Second Quarter, we continued to showcase our commitment to quality, original scripted series by successfully launching our third series, Signed, Sealed, Delivered, fortifying our brand and establishing a strong foundation for the second half of the year," said Bill Abbott, president and CEO of Crown Media Family Networks. "Moreover, we reported double-digit operating cash flow growth propelled by rising advertising revenue in recent quarters. Solid pricing combined with our second season of Cedar Cove and a robust slate of original movies should bolster earnings through the remainder of the year." A full-text copy of the Form 10-Q is available for free at: http://goo.gl/w9HZpH About Crown Media Crown Media Holdings, Inc., is the corporate parent for the portfolio of cable networks and related businesses under Crown Media Family Networks. The company currently operates and distributes Hallmark Channel in both high definition (HD) and standard definition (SD) to 86 million subscribers in the U.S. Hallmark Channel is the nation's leading destination for quality family programming with an ambitious slate of TV movies and specials; original scripted series, including Cedar Cove, When Calls the Heart, and Signed, Sealed, Delivered; as well as some of television's most beloved sitcoms and series. Hallmark Channel's sibling network, Hallmark Movie Channel, is available in 54 million homes in HD and SD. One of America's fastest-growing cable networks, Hallmark Movie Channel provides family-friendly original movies with a mix of original films, classic theatrical releases, and presentations from the acclaimed Hallmark Hall of Fame library. In addition, Crown Media Family Networks includes the online offerings of HallmarkChannel.com and HallmarkMovieChannel.com. Crown Media reported net income attributable to common stockholders of $67.71 million on $377.80 million of net total revenue for the year ended Dec. 31, 2013, as compared with net income attributable to common stockholders of $107.35 million on $349.87 million of net total revenue for the year ended Dec. 31, 2012. Bankruptcy Warning "Our senior secured credit facilities and the indenture governing the Notes contain a number of covenants that impose significant operating and financial restrictions on us which, among other things, limit our ability to do the following: * incur additional debt or issue certain preferred shares; * pay dividends on or make distributions in respect of our capital stock or make other restricted payments; * make certain payments on debt that is subordinated or secured on a junior basis; * make certain investments; * sell certain assets; * create liens on certain assets; * consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; * enter into certain transactions with our affiliates; and * designate our subsidiaries as unrestricted subsidiaries. Any of these restrictions could limit our ability to plan for or react to market conditions and could otherwise restrict corporate activities. Any failure to comply with these covenants could result in a default under our senior secured credit facilities and the indenture governing the Notes. Upon a default, unless waived, the lenders under our senior secured credit facilities could elect to terminate their commitments, cease making further loans, foreclose on our assets pledged to such lenders to secure our obligations under the senior secured credit facilities and force us into bankruptcy or liquidation. Holders of the Notes would also have the ability ultimately to force us into bankruptcy or liquidation, subject to the indenture governing the Notes," the Company said in the Annual Report for the year ended Dec. 31, 2013. * * * As reported by the TCR on May 28, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Studio City, Calif.-based cable network company Crown Media Holdings Inc. to 'B+' from 'B'. "The upgrade reflects Crown Media's recent operating performance, which achieved higher EBITDA and lower leverage than our expectations," said Standard & Poor's credit analyst Deborah Kinzer. As reported by the TCR on July 2, 2014, Moody's Investors Service upgraded the Corporate Family Rating (CFR) of Crown Media Holdings, Inc. to B1 from B2, its Probability of Default Rating to B1-PD from B2-PD, and instrument ratings as detailed below. The outlook is stable. The upgrade incorporates evidence of traction with the original programming strategy and better than expected performance, which, combined with debt reduction, improved the credit profile. CRUMBS BAKE SHOP: Noah Reynolds Dumps Equity Stake -------------------------------------------------- W Noah Reynolds disclosed in a SCHEDULE 13G-A filing dated July 25 with the Securities and Exchange Commission that, as of July 23, he no longer holds equity shares of Crumbs Bake Shop, Inc. As reported by the Troubled Company Reporter, Mr. Reynolds disclosed in a Schedule 13G filing dated July 18, that as of July 14, he may be deemed to beneficially own 800,000 shares or 6.33% of the Company's common stock. This is based on the 12,469,073 Common Shares and 234,000 Preferred Shares reported on the Company's Form 10-Q as of March 31, 2014. Mr. Reynolds is a great-grandson of R.J. Reynolds Tobacco Co.'s founder. Richard Craver, writing for the Winston-Salem Journal, reported on July 21 that Mr. Reynolds did not comment on the July 18 regulatory filing, but that he told Bloomberg News he spent more than $250,000 on his stake. The share price was unchanged July 21 at 34 cents, making his investment worth $272,000. According to the Winston-Salem Journal report, Mr. Reynolds said he believes that Marcus Lemonis -- host of CNBC's The Profit series, chief executive of Camping World, and among the investors behind Lemonis Fischer Acquisition Co. LLC, which is buying Crumbs at a bankruptcy action -- will probably preserve some value for existing shareholders in the reorganized company. "I am banking on Mr. Lemonis's reputation," Mr. Reynolds said. "I will either own a few crumbs in the new business or be wiped out." The July 25 SEC filing, however, doesn't provide any further details about Mr. Reynolds' latest move. About Crumbs Bake Shop Crumbs Bake Shop, Inc. (OTCBB: CRMB), a New York-based cupcake specialty store chain, and 22 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. N.J. Lead Case No. 14-24287) on July 11, 2014. John D. Ireland signed the petitions as chief financial officer. Crumbs Bake Shop estimated assets of $10 million to $50 million and the same range of liabilities. Cole, Schotz, Meisel, Forman & Leonard, P.A., acts as the Debtors' counsel. Glass Ratner is serving as Crumbs' financial advisor. Prime Clerk LLC is the Debtors' claims and noticing agent. Judge Michael B. Kaplan oversees the jointly administered cases. * * * On July 7, 2014, the Board of Directors of Crumbs Bake Shop determined to cease operations effective immediately. The Board's determination was made after the Company lacked sufficient liquidity to maintain current operations. On the petition date, Crumbs entered into an Asset Purchase Agreement through which Lemonis Fischer Acquisition Company, LLC, a joint venture created by Marcus Lemonis LLC and Fischer Enterprises, L.L.C., will acquire the Crumbs' business as part of the Company's Chapter 11 filing. The Debtor will sell itself at a bankruptcy auction on Aug. 21. The lead bidder has a $6.5 million credit bid. A hearing to approve the sale is scheduled to take place on Aug. 26. The Company hopes to complete the sale process in approximately 60 days, pending receipt of the necessary approvals from the Bankruptcy Court. Lemonis Fischer Acquisition is represented by Louis Price, Esq., at McAfee & Taft PC. CRYOPORT INC: Incurs $3.1 Million Net Loss in Q1 Fiscal 2015 ------------------------------------------------------------ Cryoport, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $3.06 million on $936,588 of revenues for the three months ended June 30, 2014, as compared with a net loss of $1.32 million on $487,963 of revenues for the same period last year. As of June 30, 2014, the Company had $1.32 million in total assets, $2.38 million in total liabilities, all current, and a $1.05 million total stockholders' deficit. As of June 30, 2014, Cryoport had cash and cash equivalents of $0.2 million compared with $0.4 million as of March 31, 2014. "We continue to make significant strides in our business development efforts as demonstrated over the last several quarters. This includes closing a number of strategic customer deals and partnership agreements that will contribute significantly to future revenue growth," stated Jerrell Shelton, chief executive officer of Cryoport. "Our focus on scaling operations in order to drive profitable growth for the business is quickly being recognized. For the first quarter of fiscal 2015, revenue increased 92% to $0.94 million, with a gross margin of 36%, compared to $0.49 million in revenue and a gross margin of 11% for the same period last year." Mr. Shelton further stated, "We continue to move forward with our 'powered by CryoportSM' partnering strategy designed to expand our sales and marketing reach as well as increase the awareness of our solutions in the life sciences community. We are excited to report that our distinct strategic agreements with FedEx and DHL, two of the largest integrators in the world, have allowed us to extend our reach and positioning to address a larger portion of the market. Our unique approach with each partnership remains proactive, as we look to help educate and provide ongoing support to each company's respective sales team for our cryogenic solutions." A full-text copy of the Form 10-Q is available for free at: http://goo.gl/o4SkLN About Cryoport Lake Forest, Calif.-based CryoPort, Inc. (OTC BB: CYRX) provides comprehensive solutions for frozen cold chain logistics, primarily in the life science industries. Its solutions afford new and reliable alternatives to currently existing products and services utilized for bio-pharmaceuticals and biologics, including in-vitro fertilization, cell lines, vaccines, tissue and other commodities requiring a reliable frozen solution. Cryoport reported a net loss of $19.56 million on $2.65 million of revenues for the year ended March 31, 2014, as compared with a net loss of $6.38 million on $1.10 million of revenues for the year ended March 31, 2013. KMJ Corbin & Company LLP, in Costa Mesa, California, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2014. The independent auditors noted that the Company has incurred recurring operating losses and has had negative cash flows from operations since inception. Although the Company has cash and cash equivalents of $369,581 at March 31, 2014, management has estimated that cash on hand, which include proceeds from convertible bridge notes received in the fourth quarter of fiscal 2014, will only be sufficient to allow the Company to continue its operations into the second quarter of fiscal 2015. These matters raise substantial doubt about the Company's ability to continue as a going concern. DIAGNOSTICS RESEARCH: Case Summary & 20 Top Unsecured Creditors --------------------------------------------------------------- Debtor: Diagnostics Research Corporation 4001 S. Decatur Blvd., Ste. 37-369 Las Vegas, NV 89103 Case No.: 14-15195 Chapter 11 Petition Date: July 31, 2014 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Hon. August B. Landis Debtor's Counsel: Samuel A. Schwartz, Esq. THE SCHWARTZ LAW FIRM, INC. 6623 Las Vegas Blvd. So., Ste 300 Las Vegas, NV 89119 Tel: (702) 385-5544 Fax: (702) 385-2741 Email: sam@schwartzlawyers.com Total Assets: $58,263 Total Liabilities: $3.27 million The petition was signed by W. Stanton Sutton, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nvb14-15195.pdf DOW CORNING: Tissue Expanders Are Breast Implants, 6th Cir. Says ---------------------------------------------------------------- Dow Corning Corporation suffered a loss Thursday when the U.S. Court of Appeals for the Sixth Circuit affirmed a lower court ruling over the definition of "breast implants". Dow Corning manufactures and distributes various medical devices, including "breast implants" and "tissue expanders." For purposes of the dispute, "[b]reast [i]mplant[s]" are "all silicone gel and saline-filled breast implants with silicone elastomer envelopes manufactured and either sold or otherwise distributed by [Dow Corning]." "Tissue expanders" come in hundreds of varieties, but three Dow Corning models are designed for implantation in the breast, where they are filled with saline to stretch the patient's skin before (typically) being removed after several weeks. Not all of these products worked the way they should. By 1995, thousands of breast-implant patients had filed lawsuits against Dow Corning stemming from their use of the company's devices. Dow Corning eventually filed a Chapter 11 bankruptcy petition. The company agreed to a plan of reorganization that establishes a more than $2 billion fund for patients willing to settle their claims. The plan describes what claims are eligible for payment, how claims will be paid, how much money claimants can receive, and so on. The plan empowers the district court "to resolve controversies and disputes regarding interpretation and implementation of th[e] Plan and the Plan Documents." The parties asked the district court to determine whether the plan's breast-implant coverage extended to tissue expanders. As the trial court initially saw it, Dow Corning's three models of breast-implanted tissue expanders met every element of the reorganization plan's "[b]reast [i]mplant" definition. Each model has a silicone envelope that is implanted in the breast and gradually filled with saline solution. In the court's view, "breast implants" thus unambiguously included "tissue expanders." In a 2010 appeal, the Sixth Circuit agreed with the lower court, in part. After acknowledging that the court's resolution of the "breast implant" question reasonably construed the reorganization plan's words, the Sixth Circuit identified another, more technical reading of "breast implant" that might exclude "tissue expanders" from its scope. On this basis, the Sixth Circuit reasoned that the definition was ambiguous, vacated the district court's order, and remanded the case to allow the court to consider other evidence about the meaning of the phrase. On remand, the district court considered the question anew. After accounting for this other possibility, it still concluded that the parties intended "[b]reast [i]mplant" to include "tissue expanders." Dow Corning again elevated the matter to the Sixth Circuit. Dow Corning insists that the district court erred because its second ruling on the "breast implant" issue contradicts its first. In its first opinion on this topic, Dow Corning pointed out that the district court said that "tissue expanders made by Dow Corning did not trigger the 50% reduction in benefits as did breast implants, lending credibility to [Dow Corning's] claim that even under the [Revised Settlement Program] tissue expanders were not considered `Breast Implants.'" The district court's second opinion, Dow Corning argues, treated this evidence differently. A three-judge panel of the Sixth Circuit said this is an odd argument for Dow Corning to make, as it sought a ruling from the district court that was 180 degrees away from its first ruling. That possibility was the whole point of the remand, the appeals court said. According to the Sixth Circuit, "At any rate, there is less material tension here than Dow Corning suggests. To say that some evidence "lend[s] credibility" to an argument does not establish that the district court found Dow Corning's argument conclusive or even persuasive. The first time around, moreover, the statement was dicta. The district court was careful to explain in its first opinion that it did not "consider[] the [extrinsic] evidence involving the [Revised Settlement Program]," because it believed the parties' "[b]reast [i]mplant" definition to be unambiguous. Only in its second opinion did the district court rely on (or make any findings concerning) the Revised Settlement Program. On remand, the district court fairly did what we asked and reasonably construed the operative terms of the settlement agreement in the process." The case before the Sixth Circuit is, DOW CORNING CORPORATION, Interested Party-Appellant, v. CLAIMANTS' ADVISORY COMMITTEE, Interested Party-Appellee, No. 13-2456 (6th Cir.). A copy of the Sixth Circuit's July 31, 2014 opinion is available at http://is.gd/r4vmt9from Leagle.com. Judge Jeffrey Stuart Sutton penned the decision. Judges Richard Allen Griffin and Judge Edmund A. Sargus, Jr., U.S. District Judge for the Southern District of Ohio, sitting by designation, are the other two members of the panel. About Dow Corning Dow Corning Corp. -- http://www.dowcorning.com/-- produces and supplies more than 7,000 silicon-based products and services to more than 25,000 customers worldwide. Dow Corning is equally owned by The Dow Chemical Company and Corning Incorporated. The Company filed for Chapter 11 protection on May 15, 1995 (Bankr. E.D. Mich. Case No. 95-20512) to resolve silicone implant- related tort liability. The Company owed its commercial creditors more than $1 billion at that time. A consensual Joint Plan of Reorganization, amended on February 4, 1999, offering to pay commercial creditors in full with post-petition interest, establish a multi-billion-dollar settlement trust for tort claims, and leave Dow Corning's shareholders unimpaired, took effect on June 30, 2004. DOW CORNING: $1.6BB Breast Implant Suit Reserve at June 30 ---------------------------------------------------------- Corning Inc. and The Dow Chemical Company each own 50% of the common stock of Dow Corning Corporation. In May 1995, Dow Corning filed for bankruptcy protection to address pending and claimed liabilities arising from breast implant product lawsuits. On June 1, 2004, Dow Corning emerged from Chapter 11 with a Plan, which provided for the settlement or other resolution of implant claims. The Plan also included releases for Corning and Dow as shareholders in exchange for contributions to the Plan. Under the Plan, Dow Corning has established and is funding a Settlement Trust and a Litigation Facility to provide a means for tort claimants to settle or litigate their claims. Inclusive of insurance, Dow Corning has paid approximately $1.8 billion to the Settlement Trust. In a Form 10-Q filing with the Securities and Exchange Commission for the the quarterly period ended June 30, 2014, Corning Inc. disclosed that as of June 30, 2014, Dow Corning had recorded a reserve for breast implant litigation of $1.6 billion. Corning Inc. also disclosed that Dow Corning is defending claims asserted by a number of commercial creditors who claim additional interest at default rates and enforcement costs, during the period from May 1995 through June 2004. As of June 30, 2014, Dow Corning has estimated the potential liability to these creditors to be within the range of $97 million to $317 million. As Dow Corning management believes no single amount within the range appears to be a better estimate than any other amount within the range, Dow Corning has recorded the minimum liability within the range. Should Dow Corning not prevail in this matter, Corning Inc. said its equity earnings would be reduced by its 50% share of the amount in excess of $97 million, net of applicable tax benefits. There are a number of other claims in the bankruptcy proceedings against Dow Corning awaiting resolution by the U.S. District Court, and it is reasonably possible that Dow Corning may record bankruptcy-related charges in the future. About Dow Corning Dow Corning Corp. -- http://www.dowcorning.com/-- produces and supplies more than 7,000 silicon-based products and services to more than 25,000 customers worldwide. Dow Corning is equally owned by The Dow Chemical Company and Corning Incorporated. The Company filed for Chapter 11 protection on May 15, 1995 (Bankr. E.D. Mich. Case No. 95-20512) to resolve silicone implant- related tort liability. The Company owed its commercial creditors more than $1 billion at that time. A consensual Joint Plan of Reorganization, amended on February 4, 1999, offering to pay commercial creditors in full with post-petition interest, establish a multi-billion-dollar settlement trust for tort claims, and leave Dow Corning's shareholders unimpaired, took effect on June 30, 2004. DTS8 COFFEE: Delays Form 10-K for Fiscal 2014 --------------------------------------------- DTS8 Coffee & Tea, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report for the period ended April 30, 2014. The Company said the Form 10-K could not be filed within the prescribed time period due to additional time required to prepare and complete that document. About DTS8 Coffee DTS8 Coffee Company, Ltd. (previously Berkeley Coffee & Tea, Inc.) was incorporated in the State of Nevada on March 27, 2009. Effective Jan. 22, 2013, the Company changed its name from Berkeley Coffee & Tea, Inc., to DTS8 Coffee Company, Ltd. On April 30, 2012, the Company acquired 100 percent of the issued and outstanding capital stock of DTS8 Holdings Co., Ltd., a corporation organized and existing since June 2008 under the laws of Hong Kong and which owns DTS8 Coffee (Shanghai) Co., Ltd. DTS8 Holdings, through its subsidiary DTS8 Coffee, is a gourmet coffee roasting company established in June 2008. DTS8 Coffee's office and roasting factory is located in Shanghai, China. DTS8 Coffee is in the business of roasting, marketing and selling gourmet roasted coffee to its customers in Shanghai, and other parts of China. It sells gourmet roasted coffee under the "DTS8 Coffee" label through distribution channels that reach consumers at restaurants, multi-location coffee shops, and offices. Malone & Bailey, PC, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended April 30, 2013. The independent auditors noted that the Company has suffered recurring losses from operations, which raises substantial doubt about its ability to continue as a going concern. DTS8 Coffee incurred a net loss of $1.11 million for the year ended April 30, 2013, following a net loss of $45,730 for the year ended April 30, 2012. The Company's balance sheet at Jan. 31, 2014, showed $4.60 million in total assets, $998,252 in total liabilities, all current, $3.60 million in total shareholders' equity. E.W. SCRIPPS: S&P Puts 'BB-' CCR on Watch Pos. Over Merger Plans ---------------------------------------------------------------- Standard & Poor's Ratings Services placed all its ratings on Cincinnati-based TV broadcaster and newspaper publisher E.W. Scripps Co. on CreditWatch with positive implications. This includes the 'BB-' corporate credit rating and 'BB+' issue-level rating on the company's senior secured credit facility. The action follows the company's announcement last night that it has entered into a definite agreement to merge with Milwaukee- based Journal Communications Inc. and then spin off the two companies' newspaper businesses into a separate independent company. S&P believes this transaction could improve the company's business risk profile, which it currently assess as "weak" due, in part, to the company's below average margins in the television business and exposure to the newspaper segment, which faces unfavorable secular trends. The transaction will provide opportunities for the company to improve its EBITDA margin, which is below peers', through greater scale and more TV station duopolies. In addition, the spin-off of the newspaper operations would alleviate risks of structural decline in print-based publishing and allow the company to focus its efforts on improving its TV business. Pro forma for the transaction, E.W. Scripps will own 35 TV stations and 35 radio stations in 27 markets, reaching roughly 18% of U.S. TV households. S&P expects Scripps will assume or refinance Journal Communications' outstanding debt and will assume all newspaper pension obligations resulting in adjusted leverage in the 2x area (Scripps' adjusted leverage as of March 31, 2014 was 2.5x). In resolving S&P's CreditWatch listing, it will more fully evaluate the business risk profile of E.W. Scripps, assessing management's ability to operate a larger TV station company after integrating both this acquisition and the two Granite TV stations that it purchased in June 2014. S&P will focus specifically on the ability of the company to improve its EBITDA margin to more closely align with its TV station peers. EDGENET INC: Wins September Extension of Plan Exclusivity Period ---------------------------------------------------------------- Edgenet, Inc. requested an extension of its exclusive period for filing and soliciting a Plan of Reorganization in its chapter 11 case in the Bankruptcy Court for the District of Delaware. This was the Debtor's second request for an extension. The Debtor is requesting an extension to September 14th to file its Plan and to November 10th to solicit acceptances to the Plan. Since filing its chapter 11 petition, the Debtor has been working on the sale of substantially all of its assets. An auction was conducted on June 6th where EdgeAG, LLC was the successful bidder. The Debtor also instituted an adversary proceeding against Ernest Han-Ping Wu seeking avoidance of Wu's alleged security interest in the Debtor's assets. The Debtor has filed a motion for summary judgment in that matter, and expects a resolution shortly. Section 11121(d) of the Bankruptcy Code permits extensions of a Debtor's exclusive filing period and exclusive solicitation period for "cause". The Debtor argues that "cause" exists in this case for the following reasons: 1) Until the Wu adversary proceeding is resolved, the Debtor will be unable to calculate the extent of equity holder claims; 2) The Debtor has made good faith progress in this case by filing the necessary schedules and statements, and through the sale of its assets; 3) The Debtor is current on its post-petition obligations; 4) The case has only been pending for a period of a few months; and 5) The extension will not prejudice creditors. The Debtor is represented by Dominic E. Pacitti, Esq., Raymond H. Lemisch, Esq., and Margaret M. Manning, Esq. at Klehr, Harrison, Harvey, Branzburg LLP of Wilmington, DE and Morton R. Branzburg, Esq. at the Philadelphia, PA office of the firm. Hon. Brendan L. Shannon granted the requested extension. About Edgenet Inc. Edgenet, Inc., and Edgenet Holding Corp. are providers of cloud- based content and applications that enable companies to sell more products and services with greater ease across multiple channels and devices. Edgenet has three business locations: Waukesha, WI, Brentwood, TN, and its main office in Atlanta, GA. The Company has 80 employees. Edgenet Inc. and Edgenet Holding filed for Chapter 11 bankruptcy protection in Delaware (Lead Case No. 14-10066) on Jan. 14, 2014. Edgenet Inc. estimated assets of at least $10 million and liabilities of $100 million to $500 million. Raymond Howard Lemisch, Esq., at Klehr Harrison Harvey Branzburg LLP, in Wilmington, Delaware, serves as counsel to the Debtors; Glass Ratner Advisory & Capital Group LLC is the financial advisor; JMP Securities, LLC, is the investment banker, and Phase Eleven Consultants, LLC, is the claims and noticing agent. The U.S. Trustee has been unable to appoint an official unsecured creditors committee as no sufficient interest has been generated from creditors. Fred Marxer, Timothy Choate and Davis Carr, individuals and holders of a segment of the promissory notes issued in 2004 that have been referred to by Edgenet, Inc., et al., requested that the Court issue an order appointing an official committee of Seller Noteholders, or in the alternative, an official committee of unsecured creditors, with members appointed from the Seller Noteholders who agree to waive any continued security interest arising from the Seller Notes. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed on March 13, 2014, five noteholders to serve on the Official Committee of Note Holders. In May, Bankruptcy Judge Brendan L. Shannon denied Edgenet Inc., et al.'s motion to disband the Noteholders Committee. The Noteholders Committee has retained Morris James LLP's Jeffrey R. Waxman, Esq.; and Cooley LLP's Cathey Hershcopf, Esq., and Jeffrey L. Cohen, Esq., as co-counsel to the Committee. ENERGY SERVICES: S&P Assigns 'B' CCR; Outlook Stable ---------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Energy Services Holdings, LLC. The outlook is stable. At the same time, S&P assigned its 'B' issue-level rating (the same as the corporate credit rating) to the company's proposed $150 million first-lien term loan due 2020 and proposed $30 million revolver due 2019, with a recovery of '3', indicating S&P's expectation for meaningful (50% to 70%) recovery for lenders in the event of default. The ratings on ESH reflect Standard & Poor's view of the company's limited scale and exposure to cyclical end-markets -- albeit with some competitive advantage -- which support sustainable EBITDA margins that S&P considers average. S&P's assessment of the company also reflects its controlling ownership by financial sponsor Cadent Energy Partners, and our expectation that ESH will use a portion of the proceeds from the proposed offering to pay an $85 million dividend to shareholders and to refinance existing debt. S&P views financial sponsor ownership, in general, as potentially leading to increased financial leverage, such as through potential dividend recapitalizations, which are not incorporated in S&P's base-case scenario. In S&P's view, the combination of these attributes limits the company's operational and financial flexibility. ESH provides electrical services to the North American energy infrastructure market, with a somewhat balanced exposure to downstream, midstream, upstream, and the relatively stable transmission and distribution (T&D). Its ability to provide services for nondiscretionary and largely recurring maintenance work (over 50%) provides stable growth prospects and revenue visibility. The balance of sales is tied to new capital projects, which could potentially be more cyclical--though S&P currently observes favorable dynamics in the onshore upstream oil industry because of sustained high oil prices and the growth in hydraulic fracturing activity. Other competitive advantages include the ability to maintain and improve customer retention and anticipate potential bidding requirements through its adopted system of entrenching technicians within customer locations and operations. S&P believes this could lead to somewhat higher stability of revenue streams going forward. S&P notes that ESH's overall EBITDA margins levels are vulnerable to highly volatile customer spending levels. S&P believes that ESH is less likely to cope with periods of weakness and thereby reduce the volatility of earnings through a modest downturn relative to companies that are more cost-advantaged or are larger and more diversified. Also, S&P incorporates some risk of releveraging beyond 5x through future dividend recapitalizations or acquisitions, but none are included in S&P's current assumptions. ESH's relatively low capital expenditure requirements should enable positive free cash flow over the next 12 months. ESPIRITO SANTO FINANCIERE: Files for Creditor Protection -------------------------------------------------------- Patricia Kowsmann, writing for The Wall Street Journal, reported that Espirieto Santo Financiere SA, another entity of troubled Portuguese conglomerate Espirito Santo International SA that has exposed the country's second-largest lender to big losses, has filed for creditor protection in Luxembourg. According to the report, analysts said Banco Espirito Santo may need a capital injection of EUR3 billion (US$4 billion). While the lender has said there are shareholders and private investors interested in participating, analysts say it is becoming increasingly likely the bank will also need state aid, the report said. EXIDE TECHNOLOGIES: Has $217.7MM Net Loss in Fiscal Year 2014 ------------------------------------------------------------- Exide Technologies delivered to the U.S. Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended March 31, 2014. For the 12 months ended March 31, 2014, Exide posted a net loss of $217,730,000, slightly lower than the $223,091,000 for the same period in 2013. Exide reported net income of $55,954,000 for the year ended March 31, 2012. Exide said net sales were $2,855,433,000 for the year ended March 31, 2014, slightly down from $2,971,698,000 for 2013 and $3,084,650 in 2012. At March 31, 2014, Exide had $2,032,788,000 in total assets against $829,611,000 in total current liabilities and $1,101,661,000 in liabilities not subject to compromise. Exide's Chapter 11 filing triggered defaults on substantially all debt obligations of the Company and, as a result, the Company's Senior Secured Notes and convertible senior subordinated notes have been accelerated and are due and payable. Under Section 362 of the Bankruptcy Code, actions to collect pre-petition indebtedness, as well as most other pending litigation, are stayed. Absent an order of the Bankruptcy Court, substantially all pre-petition liabilities are subject to settlement under a plan of reorganization approved by the Bankruptcy Court. There can be no assurance that a plan will be proposed by the Company or confirmed by the Bankruptcy Court or that any such plan will be successfully implemented. On June 30, 2014, the Company received a non-binding proposal for a plan of reorganization from the Unofficial Committee of Senior Secured Noteholders -- UNC -- whose members hold a substantial majority of the term loan component of the DIP Credit Facility and pre-petition senior secured notes. The POR Proposal, which is subject to completion of definitive documentation and certain other conditions, would provide approximately $485.0 million in new capital, and is currently expected to be comprised of the following: -- A preferred convertible equity capital commitment of approximately $300.0 million (a portion of which will be in the form of a rights offering backstopped by certain members of the UNC and another portion in the form of a direct investment by certain members of the UNC); -- A $185.0 million bond issuance also backstopped by certain members of the UNC; and -- An asset based loan facility for which commitments would be obtained from potential lenders in conjunction with the plan confirmation process. Exide said in its Form 10-K that at this time it is not possible to predict the ultimate effect of the Chapter 11 reorganization on the Company's business, various creditors and security holders, or when it may be possible to emerge from Chapter 11. The Company believes that under any reorganization plan the Company's common stock would likely be substantially diluted or canceled in its entirety. A copy of Exide's Form 10-K is available at http://is.gd/foqH9c About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. Exide first sought Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002 and exited bankruptcy two years after. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-11482) on June 10, 2013. Exide disclosed $1.89 billion in assets and $1.14 billion in liabilities as of March 31, 2013. Exide's international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. For the new case, Exide has tapped Anthony W. Clark, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial advisor; Sitrick and Company Inc. as public relations consultant and GCG as claims agent. Schnader Harrison Segal & Lewis LLP was tapped as special counsel. The Official Committee of Unsecured Creditors is represented by Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as co-counsel. Zolfo Cooper, LLC serves as its bankruptcy consultants and financial advisors. Geosyntec Consultants was tapped as environmental consultants to the Committee. Robert J. Keach of the law firm Bernstein Shur as fee examiner has been appointed as fee examiner. He has hired his own firm as counsel. EXIDE TECHNOLOGIES: Obtains Amendments to DIP Loan Covenants ------------------------------------------------------------ Exide Technologies obtained certain amendments to its Amended and Restated Superpriority Debtor-in-Possession Credit Agreement, dated as of July 12, 2013, by and among: * the Company, as US Borrower, * Exide Global Holding Netherlands C.V., as Foreign Borrower, * the lenders from time to time party thereto, and * JPMorgan Chase Bank, N.A., as Agent, pursuant to Amendment No. 6, dated as of July 22, 2014, and Amendment No. 7, dated as of July 25, 2014. Amendment No. 6, among other things, became effective to amend the DIP Credit Agreement as follows: -- eliminates restrictions on capital expenditures; -- modifies the definition of earnings before interest, taxes, depreciation, amortization and restructuring; -- adjusts the minimum EBITDA covenant to include the period October through November 2014 and addresses lower anticipated earnings through the end of calendar 2014; and -- extends certain milestones relating to the confirmation of a plan of reorganization by the Bankruptcy Court and the effective date of the Plan, based on a requested extension of the maturity date of the Amended DIP Credit Agreement to December 31, 2014. Specifically, Amendment No. 6 provides that: -- Exide will not permit the aggregate amount of Liquidity to be less than $35,000,000 for any five consecutive Business Days; -- Exide will not permit EBITDA to fall below for the period then ended: Date Minimum EBITDA ---- -------------- July 31, 2014 $87,650,000 August 31, 2014 $84,550,000 September 30, 2014 $82,000,000 October 31, 2014 $80,750,000 November 30, 2014 $81,400,000 -- Charges and costs incurred (x) for hourly wages and benefits relating to the Company's facility located in Vernon, California may not exceed $2,000,000 for the six-month period ending December 31, 2014. The requisite lenders under the Amended DIP Credit Agreement also approved the option for the Company to obtain additional term loan financing of up to $65 million. On July 28, 2014, the Bankruptcy Court entered an order authorizing the Company to amend the Amended DIP Credit Agreement to obtain such additional financing. Pursuant to a commitment letter executed by certain members of the Unofficial Committee of Senior Secured Noteholders, the members have committed, among other things, to providing additional term loan financing with net cash proceeds of $60 million, subject to the satisfaction of certain conditions. All of the lenders under the Amended DIP Credit Agreement approved an extension to the DIP maturity date to December 31, 2014 pursuant to Amendment No. 6. The extension will become effective upon the satisfaction of certain conditions, including, among other things, the Company and members of the UNC holding a majority in principal amount of the Company's Senior Secured Notes entering into a customary plan support agreement with respect to an Acceptable Plan of Reorganization, as that term is defined in the Amended DIP Credit Agreement. Amendment No. 7 eliminates the milestone related to filing the Plan with the Bankruptcy Court. A copy of Amendment No. 6 is available at http://is.gd/vjogw9 A copy of Amendment No. 7 is available at http://is.gd/xOnEdL About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. Exide first sought Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002 and exited bankruptcy two years after. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-11482) on June 10, 2013. Exide disclosed $1.89 billion in assets and $1.14 billion in liabilities as of March 31, 2013. Exide's international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. For the new case, Exide has tapped Anthony W. Clark, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial advisor; Sitrick and Company Inc. as public relations consultant and GCG as claims agent. Schnader Harrison Segal & Lewis LLP was tapped as special counsel. The Official Committee of Unsecured Creditors is represented by Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as co-counsel. Zolfo Cooper, LLC serves as its bankruptcy consultants and financial advisors. Geosyntec Consultants was tapped as environmental consultants to the Committee. Robert J. Keach of the law firm Bernstein Shur as fee examiner has been appointed as fee examiner. He has hired his own firm as counsel. EXIDE TECHNOLOGIES: Needs Until December to File Plan ----------------------------------------------------- Exide Technologies asks the U.S. Bankruptcy Court for the District of Delaware to extend, for the third time, until Dec. 10, 2014, its exclusive period to file a plan of reorganization and until Feb. 10, 2015, its exclusive period to solicit votes on that plan. The Debtor said in court papers that the extension to allow on- going negotiation of a confirmable plan of reorganization and to garner maximum consensus around that plan. The Debtor has said that it received a constructive proposal for a plan of reorganization -- the precise contours of which the parties are still negotiating -- from the unofficial committee of senior secured noteholders, whose members currently hold approximately 66% of the principal amount outstanding of the Debtor's senior secured notes. In addition, the Debtor and the UNC have continued to engage the official committee of unsecured creditors in the plan formulation process. More specifically, the Debtor and the UNC exchanged various plan term sheets with the Committee and its professionals and conducted several in-person meetings among the professionals in an effort to achieve a consensual plan construct. Indeed, the Debtor understands that the Committee is evaluating the latest plan proposal and is expecting to provide feedback. Finally, the Debtor said it has begun the extensive process of marketing the exit financing for a plan of reorganization, having commenced negotiations with eight potential investors and lenders regarding the terms of a potential exit asset-based revolver, exit term loan, or other alternative financing structure. A hearing to consider approval of the extension request is scheduled for Sept. 3, 2014, at 10:00 a.m. (Eastern). Objections are due Aug. 18. About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. Exide first sought Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002 and exited bankruptcy two years after. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-11482) on June 10, 2013. Exide disclosed $1.89 billion in assets and $1.14 billion in liabilities as of March 31, 2013. Exide's international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. For the new case, Exide has tapped Anthony W. Clark, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial advisor; Sitrick and Company Inc. as public relations consultant and GCG as claims agent. Schnader Harrison Segal & Lewis LLP was tapped as special counsel. The Official Committee of Unsecured Creditors is represented by Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as co-counsel. Zolfo Cooper, LLC serves as its bankruptcy consultants and financial advisors. Geosyntec Consultants was tapped as environmental consultants to the Committee. Robert J. Keach of the law firm Bernstein Shur as fee examiner has been appointed as fee examiner. He has hired his own firm as counsel. EXIDE TECHNOLOGIES: Can Obtain $65-Mil. of Additional Financing --------------------------------------------------------------- Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to obtain additional postpetition financing of up to $65 million from certain members of the Unofficial Committee of Senior Secured Noteholders. The additional financing will be used to provide the Debtor additional liquidity until it emerges from bankruptcy protection. The Debtor also obtained approval of additional amendments to the DIP Facility, which amendments include an extension of the maturity of the DIP Facility to December 31, 2014, adjustments to the EBITDA covenant thresholds, elimination of the capital expenditures covenant and an increase to the minimum liquidity covenant. The Official Committee of Unsecured Creditors objected to the Debtor's request for additional financing, complaining that while the panel understands that the Debtor may potentially be in need of additional bridge financing to reach a confirmation hearing, the Committee believes that certain provisions of the proposed financing are objectionable and must be stricken or clarified. The Creditors' Committee also complains that the Debtor made mention of a plan support agreement but did not yet disclose the document. About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. Exide first sought Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002 and exited bankruptcy two years after. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-11482) on June 10, 2013. Exide disclosed $1.89 billion in assets and $1.14 billion in liabilities as of March 31, 2013. Exide's international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. For the new case, Exide has tapped Anthony W. Clark, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial advisor; Sitrick and Company Inc. as public relations consultant and GCG as claims agent. Schnader Harrison Segal & Lewis LLP was tapped as special counsel. The Official Committee of Unsecured Creditors is represented by Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as co-counsel. Zolfo Cooper, LLC serves as its bankruptcy consultants and financial advisors. Geosyntec Consultants was tapped as environmental consultants to the Committee. Robert J. Keach of the law firm Bernstein Shur as fee examiner has been appointed as fee examiner. He has hired his own firm as counsel. FALCON STEEL: Termination Date in Cash Collateral Order Moved ------------------------------------------------------------- Falcon Steel Company sought an Order extending the termination date of the Interim Order for use of cash collateral in its chapter 11 case in the Northern District of Texas, Fort Worth Division. The Debtor filed its chapter 11 petition on June 29, 2014. On July 2, the Court entered an Interim Order for Use of Cash Collateral and Providing Partial Adequate Protection. The Order was set to expire on July 18. Pursuant to the Order, the Debtor submitted a proposed subsequent budget to Texas Capital Bank regarding the continued use of cash collateral, which Texas Capital approved. The Debtor and Texas Capital submitted an Agreed Order extending the termination date to August 1. Hon. D. Michael Lynn approved the Order on July 17. About Falcon Steel Company Falcon Steel Company and New Falcon Steel, LLC, sought Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division (Case Nos. 14-42585 and 14-42586) on June 29, 2014. Falcon Steel claims to be the only American-owned company that builds steel lattice towers for high electrical transmission lines. The Debtors are seeking joint administration of their Chapter 11 cases (Lead Case No. 14-42585). Falcon Steel was formed in 1963 and has operated continuously since that time as a manufacturer engaged in fabricating and galvanizing structural steel for customers in the United States. New Falcon, a subsidiary, suspended operations in June 2013 and is being held for sale. Falcon has three manufacturing plants in the DFW area in Texas, with one facility in Haltom City, another in Euless, and the third facility in Kaufman, Texas. The company's corporate headquarters is located at its Haltom City plant. It currently employs approximately 255 employees. Falcon Steel estimated assets and debt of $10 million to $50 million. Attorneys for the Debtor are Jeff P. Prostok, Esq. and Linda L. Lankford, Esq. at Forshey & Prostok LLP of Ft. Worth, TX. Texas Capital is represented by Eli Columbus, Esq. at Winstead PC of Dallas, TX and Jonathan L. Howell, Esq. at McCathern PLLC of Dallas, TX. FLORIDA GAMING: Court Confirms Liquidation Plan ----------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida on July 23, 2014, entered an order confirming Florida Gaming Corporation and its subsidiary, Florida Gaming Centers, Inc.'s Second Amended Joint Chapter 11 Plan of Liquidation dated July 16. As of July 28, the effective date of the Plan has yet to be determined. PURSUANT TO THE TERMS OF THE PLAN, ALL OF THE COMPANY'S EXISTING EQUITY INTERESTS, CONSISTING OF SHARES OF CLASS A CONVERTIBLE PREFERRED STOCK, CLASS AA CONVERTIBLE PREFERRED STOCK, CLASS B CONVERTIBLE PREFERRED STOCK AND CLASS F CONVERTIBLE PREFERRED STOCK, AND SHARES OF AND OPTIONS TO PURCHASE SHARES OF COMMON STOCK, WILL BE DEEMED CANCELLED UPON THE EFFECTIVE DATE, AND THE COMPANY'S SHAREHOLDERS WILL NOT RECEIVE OR RETAIN ANY DISTRIBUTION OR OTHER PROPERTY ON ACCOUNT OF THEIR SHARES. AS OF THE DATE OF THE CONFIRMATION ORDER, THERE WERE: 1,200,000 SHARES AUTHORIZED AND 27,756 SHARES OUTSTANDING OF THE COMPANY'S CLASS A CONVERTIBLE PREFERRED STOCK; 5,000 SHARES AUTHORIZED AND OUTSTANDING OF THE COMPANY'S CLASS AA CONVERTIBLE PREFERRED STOCK; 50 SHARES AUTHORIZED AND 45 SHARES OUTSTANDING OF THE COMPANY'S CLASS B CONVERTIBLE PREFERRED STOCK; 2,500 SHARES AUTHORIZED AND 1,000 SHARES OUTSTANDING OF THE COMPANY'S CLASS F CONVERTIBLE PREFERRED STOCK; AND, 7,500,000 SHARES AUTHORIZED AND 4,037,293 SHARES OUTSTANDING OF THE COMPANY'S COMMON STOCK AND 826,250 OUTSTANDING OPTIONS TO PURCHASE SHARES OF THE COMPANY'S COMMON STOCK. The Plan provides for the appointment of a Creditor Trustee to administer the Plan and the Creditor Trust. The Creditor Trustee will also serve as a representative of the Debtors' estates for the purpose of enforcing causes of action belonging to the Estates. In addition, among other things, the Creditor Trustee will (i) administer, and make all payments required pursuant to, the settlements by and among the Debtors, the Lenders under the Debtors' Credit Agreement and the Creditors' Committee, as set forth in the previously disclosed settlement agreement dated March 19, 2014 among such parties and (ii) take such actions as are necessary and reasonable to carry out the purposes of the Creditor Trust, including winding down the Debtors' business affairs. Other than Administrative Claims and Priority Tax Claims, the claims and interests in the Debtors are divided into 7 classes. The Plan generally provides for payment in full, in cash, to holders of Allowed Class 1 Centers Claims and partial payment, in cash, to holders of Allowed Class 2 Lenders Holding Claims and Class 3 Non-Subordinated Holdings Claims, as provided in the Settlement Agreement. Holders of Class 4 Subordinated Holdings Claims are entitled to distributions of their pro rata share of the Subordinated Holdings Claim Remainder, if any, as described in the Plan. Holders of Allowed Class 5 Centers Equity Interests are entitled to receive distributions on account of such interests from the net proceeds of any Causes of Action, if any, after payment in full of all Class 1 Allowed Claims, as provided in the Plan. Holders of Class 6 Holdings Preferred Equity Interests and Class 7 Holdings Equity Interests will not receive or retain any property under the Plan on account of such claims. Pursuant to the Plan, all equity interests in the Company (including outstanding shares of common stock, preferred stock, options, warrants or contractual or other rights to acquire any equity interests of the Company) will be deemed cancelled on the Effective Date. Following the Effective Date, the Company intends to file a Form 15 with the Securities and Exchange Commission to terminate and suspend the reporting requirements related to its common stock under the Securities Exchange Act of 1934, as amended. A copy of the Second Amended Chapter 11 Joint Plan of Liquidation of the Company and Centers is available at http://is.gd/G0q0Pa A copy of the Confirmation Order is available at http://is.gd/q3gaqs 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. FURNITURE BRANDS: 2nd Amended Liquidation Plan Declared Effective ----------------------------------------------------------------- The U.S. Bankruptcy Court in Wilmington, Delaware on July 14, 2014, entered an order confirming the Second Amended Joint Plan of Liquidation as filed on July 9, 2014, by FBI Wind Down, Inc., formerly known as Furniture Brands International, Inc. and its affiliated entities. On August 1, 2014, all conditions to the occurrence of the effective date set forth in the Plan and the Confirmation Order were satisfied or waived in accordance therewith and the effective date of the Plan occurred. On the same date, the Debtors filed a Notice of Effective Date of the Plan with the Bankruptcy Court. The Company has filed a Form 15 with the Securities and Exchange Commission to provide notice of the suspension of its reporting obligation under Section 12(g) of the Securities Exchange Act of 1934, as amended. With the filing of the Form 15, the Company immediately ceased filing any further periodic or current reports under the Exchange Act. Pursuant to the Plan, all equity interests in the Company -- including outstanding shares of common stock, options, warrants or contractual or other rights to acquire any equity interests of the Company -- were cancelled on the Effective Date, without consideration and have no value. Following the effectiveness of the Plan, Meredith M. Graham ceased to be director and Responsible Officer of the Company, effective as of the Effective Date. About Furniture Brands Furniture Brands International (NYSE:FBN) -- http://www.furniturebrands.com-- engaged in the designing, manufacturing, sourcing and retailing home furnishings. Furniture Brands markets products through a wide range of channels, including company owned Thomasville retail stores and through interior designers, multi-line/ independent retailers and mass merchant stores. Its brands include Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and LaBarge. The balance sheet at June 29, 2013, showed $546.73 million in total assets against $550.13 million in total liabilities. On Sept. 9, 2013, Furniture Brands International, Inc. and 18 affiliated companies sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12329). Attorneys at Paul Hastings LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. Alvarez and Marsal North America, LLC, is the restructuring advisors. Miller Buckfire & Co., LLC is the investment Banker. Epiq Systems Inc. dba Epiq Bankruptcy Solutions is the claims and notice agent. The official creditor's committee is comprised of the Pension Benefit Guaranty Corp., Milberg Factors Inc. and five suppliers. The Committee tapped Blank Rome LLP as co-counsel, Hahn & Hessen LLP as lead counsel, BDO Consulting as financial advisor, and Houlihan Lokey Capital, Inc., as investment banker. In November 2013, Furniture Brands won bankruptcy court approval to sell the business to KPS Capital Partners LP for $280 million. Private-equity investor KPS formed a new company named Heritage Home Group LLC to operate the business. Furniture Brands changed its name to FBI Wind Down, Inc., following the sale. FURNITURE BRANDS: Rejection & Admin Claims Bar Date Set ------------------------------------------------------- Following the effective date of FBI Wind Down, Inc., formerly known as Furniture Brands International, Inc.'s Second Amended Joint Plan of Liquidation, deadlines for filing certain proofs of claim have been established. According to the Notice of Plan Effective Date, all of the Debtors? executory contracts and unexpired leases will be deemed rejected as of the Effective Date in accordance with, and subject to, the provisions and requirements of sections 365 and 1123 of the Bankruptcy Code, except to the extent (a) the Debtors previously have assumed, assumed and assigned, or rejected such executory contract or unexpired lease, (b) prior to the Effective Date, the Debtors have filed a motion to assume, assume and assign, or reject an executory contract or unexpired lease on which the Bankruptcy Court has not ruled, (c) an executory contract and unexpired lease is identified in the Plan Supplement as an executory contract or unexpired lease to be assumed or assumed and assigned pursuant to the Plan, or (d) executory contracts and unexpired leases under which the counterparty has consented to the extension of the time by which the Debtors must assume or reject to a date beyond the Effective Date. Entry of the Confirmation Order by the Bankruptcy Court shall constitute approval of all rejections of executory contracts and unexpired leases. If the rejection by the Debtors of an executory contract or an unexpired lease pursuant to Section 10.1 of the Plan results in damages to the other party or parties to such executory contract or unexpired lease, a Claim for such damages arising from such rejection shall not be enforceable against the Debtors or their Estates or agents, successors, or assigns, unless a proof of Claim is filed with the Claims Agent at the following address: If by first-class mail: FBI Wind Down, Inc. Claims Processing Center c/o Epiq Bankruptcy Solutions, LLC FDR Station, P.O. Box 5075 New York, New York 10150-5075 If by hand delivery or overnight: FBI Wind Down, Inc. Claims Processing Center c/o Epiq Bankruptcy Solutions, LLC 757 Third Avenue, 3rd Floor New York, New York 10017 A proof of Claim will be deemed timely only if the original proof of Claim is mailed or delivered by hand, courier or overnight service so as to be actually received by the Claims Agent on or before 4:00 p.m. (prevailing Eastern Time) on September 1, 2014. Proofs of Claim may not be sent by facsimile, telecopy, electronic mail or other form of electronic transmission. A claimant who wishes to receive acknowledgement of receipt of its proof of Claim may submit a copy of the Proof of Claim and a self-addressed, stamped envelope to the Claims Agent along with the original Proof of Claim. Any Person that is required to file a proof of Claim arising from the rejection of an executory contract or unexpired lease under the Plan and that fails to timely do so shall be forever barred, estopped, and enjoined from asserting such Claim, and such Claim shall not be enforceable against the Liquidating Trust, the Liquidating Trustee, the Debtors, the Estates, and their respective properties, and the Liquidating Trust, the Liquidating Trustee, Debtors, the Estates, and their respective properties shall be forever discharged from any and all Liability with respect to such Claim unless otherwise ordered by the Bankruptcy Court or as otherwise provided herein. All such Claims shall, as of the Effective Date, be subject to the permanent injunction pursuant to Section 13.5 of the Plan and the Confirmation Order. All Persons seeking awards by the Bankruptcy Court of compensation for services rendered or reimbursement of expenses incurred through and including the Effective Date under section 330, 331, 503(b)(2), 503(b)(3), 503(b)(4) or 503(b)(5) of the Bankruptcy Code shall (a) file, on or before the date that is 60 days after the Effective Date, their respective applications for final allowances of compensation for services rendered and reimbursement of expenses incurred and (b) be paid in full, in Cash, in such amounts as are Allowed by the Bankruptcy Court in accordance with the order relating to or allowing any such Administrative Expense Claim. Holders of Administrative Expense Claims (other than Professional Fees) accruing from March 1, 2014 through the Effective Date must file requests for payment of Administrative Expense Claims so as to be actually received on or before 4:00 p.m. (prevailing Eastern Time) on September 1, 2014 by the Claims Agent at the following address: If by first-class mail: FBI Wind Down, Inc. Claims Processing Center c/o Epiq Bankruptcy Solutions, LLC FDR Station, P.O. Box 5075 New York, New York 10150-5075 If by hand delivery or overnight: FBI Wind Down, Inc. Claims Processing Center c/o Epiq Bankruptcy Solutions, LLC 757 Third Avenue, 3rd Floor New York, New York 10017 All such requests for payment must: (i) be signed by the claimant or, if the claimant is not an individual, by an authorized agent of the claimant; (ii) be written in the English language; (iii) denominate the claim in lawful currency of the United States as of the Supplemental Administrative Expense Bar Date; (iv) indicate the particular Debtor against which the claim is asserted; and (v) include supporting documentation (or, if such documentation is voluminous, include a summary of such documentation) or an explanation as to why such documentation is not available. The following claims are not required to be filed on or before the Supplemental Administrative Expense Claims Bar Date: (a) Professional Fee Claims; (b) any Administrative Expense Claims that (i) have been previously paid by the Debtors in the ordinary course of business or otherwise or (ii) have otherwise been satisfied; (c) any Administrative Expense Claims previously filed with Epiq or the Court; (d) any Administrative Expense Claim that has been Allowed by prior order of the Bankruptcy Court; (e) any claims by any officer or director of the Debtors immediately prior to the Effective Date; (f) any claims for bonus payments arising under the Key Employee Incentive Plan approved by order of the Bankruptcy Court [Docket No. 374]; (g) any claims by any direct or indirect non-debtor subsidiary or affiliate of the Debtors; (h) any claims for fees payable to the Clerk of this Court; (i) any U.S. Trustee Fees; and (j) any claim by a governmental unit for a tax or penalty described in section 503(b)(1)(B) and (C) of the Bankruptcy Code, as provided for in section 503(b)(1)(D). Any Person that is required to file a request for payment of an Administrative Expense Claim under the Plan and that fails to timely do so shall be forever barred, estopped, and enjoined from asserting such Administrative Expense Claim, and such Administrative Expense Claim shall not be enforceable. For questions about the Plan, the Confirmation Order, the Notice, or the Effective Date, parties should contact the Debtors' Claims Agent, Epiq Bankruptcy Solutions, LLC, at (877) 797-6087 (or outside of the U.S. at (503) 597-7678). About Furniture Brands Furniture Brands International (NYSE:FBN) -- http://www.furniturebrands.com-- engaged in the designing, manufacturing, sourcing and retailing home furnishings. Furniture Brands markets products through a wide range of channels, including company owned Thomasville retail stores and through interior designers, multi-line/ independent retailers and mass merchant stores. Its brands include Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and LaBarge. The balance sheet at June 29, 2013, showed $546.73 million in total assets against $550.13 million in total liabilities. On Sept. 9, 2013, Furniture Brands International, Inc. and 18 affiliated companies sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12329). Attorneys at Paul Hastings LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. Alvarez and Marsal North America, LLC, is the restructuring advisors. Miller Buckfire & Co., LLC is the investment Banker. Epiq Systems Inc. dba Epiq Bankruptcy Solutions is the claims and notice agent. The official creditor's committee is comprised of the Pension Benefit Guaranty Corp., Milberg Factors Inc. and five suppliers. The Committee tapped Blank Rome LLP as co-counsel, Hahn & Hessen LLP as lead counsel, BDO Consulting as financial advisor, and Houlihan Lokey Capital, Inc., as investment banker. In November 2013, Furniture Brands won bankruptcy court approval to sell the business to KPS Capital Partners LP for $280 million. Private-equity investor KPS formed a new company named Heritage Home Group LLC to operate the business. Furniture Brands changed its name to FBI Wind Down, Inc., following the sale. The Debtors on July 14, 2014, won confirmation of their Second Amended Joint Plan of Liquidation as filed on July 9, 2014. GENERAL MOTORS: HMG Files Pre-Bankruptcy Ignition Switch Suits -------------------------------------------------------------- On July 31, 2014, Texas lawyer Bob Hilliard, one of the nation's key players in pursuing claims against General Motors for deaths and injuries caused by faulty ignition switches, filed a lawsuit on behalf of 156 individuals who were injured or killed in GM's defective vehicles. Unlike Hilliard's filing of July 28th, which involved 658 victims whose accidents occurred after GM emerged from Bankruptcy, and are not subject to GM's bankruptcy defenses, the July 31 filings are solely on behalf of victims who died or suffered injuries prior to GM's filing for Bankruptcy protection due to GM's ignition switch defect, and will have to defeat GM's claims of bankruptcy protection. Mr. Hilliard's lawsuit is filed in the United States Southern District Court of New York where the General Motors, LLC Ignition Switch Multi District Litigation (MDL) is currently pending and names 20 Plaintiffs who are bringing claims on behalf of individuals who were killed and 136 who were injured. The July 31 filing represents pre-bankruptcy death and injury cases that are not eligible to apply for compensation under the Feinberg Plan due to the restrictive nature of the Fund's vehicle qualifications. Mr. Hilliard says, "GM is not allowing victims of the subsequent 15 million vehicles recalled for defective ignition switch issues to have access to the fund and has told Mr. Feinberg it is restricting eligibility to only the first 2.4 million vehicles recalled. My clients in [Thurs]day's lawsuit were involved in accidents in vehicles that were ultimately recalled by GM for defective ignition switch issues." "By restricting the fund to the first recall, a very small group of potential claimants, GM sends the clear message that it will not take responsibility for a majority of the victims who have suffered because of GM -- the families of the hundreds who have died or the victims who have been severely injured in subsequently recalled defective ignition vehicles whose deaths or injuries occurred prior to 2009." "General Motors is very publically and proudly sharpening its Bankruptcy sword and has expressed every intention of wielding it to inflict yet more injury on those whose lives it has already devastated." Mr. Hilliard goes on to state, "There is a ongoing process beginning in Judge Gerber's bankruptcy court that will ultimately determine if GM will enjoy full bankruptcy protection in the face of the many lives it took and the devastating and permanent injuries it caused. My clients and I trust this process. His Honor, Judge Gerber, who is charged with making this decision, is well respected by both sides and is well suited for weighing all the necessary evidence in order to make his ruling." "My clients understand GM intends to do everything within its billion-dollar power to prevent their access to the courthouse. If GM has its way, a jury will never be allowed to hear their tragic story." "I join with the best lawyers in the country to do everything in our power to defeat GM on this crucial issue." "I again call on Mary Barra to either drop this outrageously unfair bankruptcy dodge, or quit telling the world GM is committed to treating the victims fairly and with compassion." "GM's brutally callous actions in trying to use its bankruptcy boot to kick these victims off the courthouse steps drown out the hollow and untrue platitudes that its CEO keeps repeating." "What GM is doing speaks so loudly that the World can no longer hear what Mary Barra says." Mr. Hilliard has filed a request with Judge Furman to lead the MDL's national personal injury and death litigation. The case is Edwards, et al. v. General Motors, LLC in the Southern District of New York. About HMG Hilliard Munoz Gonzales LLP (HMG) -- http://www.hmglawfirm.com/-- specializes in mass torts, personal injury, product liability, commercial and business litigation, and wrongful death. Hilliard Munoz Gonzales LLP has been successfully representing clients in the United States and Mexico since 1986. Bob Hilliard obtained the Largest Verdict in the country in 2012 and the #1 verdict in Texas in 2013. HMG is actively seeking to represent other victims of GM's defective vehicles. About General Motors With its global headquarters in Detroit, Michigan, General Motors -- http://www.gm.com/-- is one of the world's largest automakers, traces its roots back to 1908. General Motors Co. was formed to acquire the operations of General Motors Corp. through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The U.S. government provided financing. The deal was closed July 10, 2009, and Old GM changed its name to Motors Liquidation Co. Old GM -- General Motors Corporation -- 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. The Debtors tapped Weil, Gotshal & Manges LLP Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel; and Morgan Stanley, Evercore Partners and the Blackstone Group LLP as financial advisor. 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 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. 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 96.26 cents-on- the-dollar during the week ended Friday, Aug. 1, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.41 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. GFI GROUP: Merger Plans Cues Fitch to Put BB- Ratings on Watch Pos ------------------------------------------------------------------ Fitch Ratings has placed GFI Group Inc.'s long-term Issuer Default Rating (IDR) and senior unsecured debt rating of 'BB-' on Rating Watch Positive. The rating action follows the announcement that CME Group (CME) will be acquiring GFI's Trayport and Fenics businesses in a two- step transaction. The transaction will be effected through a merger of GFI and CME and a concurrent acquisition of the wholesale brokerage business by an entity controlled by the private consortium of GFI management. CME will also assume GFI's $240 million in senior debt outstanding. The transaction is expected to close no later than first quarter of 2015, subject to shareholder and regulatory approvals. Key Rating Drivers - IDRS And Senior Debt The Positive Watch reflects the expected assumption of all of GFI's debt by CME. Fitch does not rate CME, but views it as having a materially lower credit risk profile than GFI, based on CME's dominant market position, strong profitability (69% EBITDA margin as of March 31, 2014), low cash flow leverage (1.0x gross debt-to- EBITDA) and solid interest coverage (16.0x EBITDA-to-interest expense). As of March 31, 2014, GFI had $250 million of debt outstanding, with $240 million of senior notes due July 2018, and $10 million of draws on its bank credit facility. GFI is expected to repay $10 million of bank borrowings before the transaction closes. The $240 million senior notes have a change of control provision and are expected to be repaid by CME following the transaction close in 2015. Rating Sensitivities - IDRS And Senior Debt Fitch expects to resolve the Rating Watch following the close of the transaction, which is expected to be sometime in first quarter of 2015. Ratings could be upgraded based upon Fitch's evaluation of CME. Ratings could also be withdrawn if Fitch is unable to evaluate CME's credit profile. If the transaction fails to close, Fitch believes this would call into question the long-term viability of the business on a stand- alone basis, and therefore could result in a multi-notch rating downgrade. Potential pressure on existing covenant compliance under the bank credit facility would further support this view. Fitch places the following ratings on Rating Watch Positive: GFI Group Inc. -- Long-term IDR 'BB-'; -- Short-term IDR 'B'; -- Senior unsecured debt 'BB-'. GMAC MORTGAGE: 10th Cir. Affirms Ruling in "McKinsey" Suit ---------------------------------------------------------- Michael and Deborah McKinsey, appearing pro se, appeal a district court order that dismissed in part, and stayed in part, their claims against several financial institutions arising out of the foreclosure of their home, and denied their motion for default judgment against several of the defendants. Ms. McKinsey also appeals the ruling in that same order denying her motion for a temporary restraining order and preliminary injunction. In a July 31, 2014, Order and Judgment available at http://is.gd/BZxwWGfrom Leagle.com, a three-judge panel of the U.S. Court of Appeals, Tenth Circuit, affirmed. "We affirm the district court's denial of Ms. McKinsey's motion for injunctive relief, and we dismiss the remainder of the appeal for lack of jurisdiction," the Tenth Circuit said. The panel consists of Circuit Judges Scott M. Matheson, Jr., John C. Porfilio, and Gregory A. Phillips. The case is, MICHAEL R. MCKINSEY; DEBORAH E. MCKINSEY, Plaintiffs- Appellants, v. GMAC MORTGAGE, LLC; DEUTSCHE BANK NATIONAL TRUST COMPANY AMERICAS, as trustee for securitized trust Harborview Mortgage Loan Trust Mortgage Loan Pass-Through Certificates, Series 2006-14; WELLS FARGO BANK, N.A.; Defendants-Appellees. BANK UNITED, FSB; PUBLIC TRUSTEE OF GUNNISON COUNTY, COLORADO; ALL UNKNOWN PERSONS WHO CLAIM ANY INTEREST IN THE SUBJECT MATTER OF THIS ACTION, Defendants, No. 13-1335 (10th Cir.). About Residential Capital Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities at March 31, 2012. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. ResCap sold most of the businesses for a combined $4.5 billion. The Bankruptcy Court in November 2012 approved ResCap's sale of its mortgage servicing and origination platform assets to Ocwen Loan Servicing, LLC and Walter Investment Management Corporation for $3 billion; and its portfolio of roughly 50,000 whole loans to Berkshire Hathaway for $1.5 billion. Judge Martin Glenn in December 2013 confirmed the Joint Chapter 11 Plan co-proposed by Residential Capital and the Official Committee of Unsecured Creditors. GOLDEN LAND: Receiver, Creditor Seek Bar Dates ---------------------------------------------- Lawrence Litwack, Receiver, and secured creditor 37 Avenue Realty Associates have requested that Bar Dates be set in the chapter 11 case of Golden Land LLC which is pending in the Bankruptcy Court for the Eastern District of New York. Litwach and 37 Avenue are also seeking approval of their proposed claim form and notice procedures. This case is a single asset real estate case, and the Debtor's condominium complex, American-Chinese Tower Condominium, was scheduled for foreclosure auction the day after the Debtor filed its chapter 11 petition on May 8, 2014. To date, the Receiver has identified three creditors and various taxing authorities which have claims against the estate. The Receiver does not anticipate the filing of additional claims. The Receiver and 37 Avenue requested that a general Bar Date of September 30, 2014 and a governmental entity Bar Date of March 31, 2015 be set. Additionally, the Receiver and 37 Avenue request that claims be filed electronically, by mail, or by hand-delivery with no facsimile or e-mail claims being permitted. In addition to claim notices being mailed to known creditors, the Receiver intends to publish the Notice in a newspaper of general circulation in Queens, NY. Tracy L. Klestadt, Esq. and Brendan M. Scott, Esq. at Klestadt and Winters, LLP of New York, NY represent 37 Avenue. Lawrence Litwack is located in Baytown, NY. A hearing has been set for August 7. Golden Land LLC filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 14-42315) in Brooklyn, New York, on May 8, 2014. The Debtor estimated assets and debt of $10 million to $50 million. Xiangan Gong, Esq., at Xiangan Gong serves as the Debtor's counsel. Judge Nancy Hershey Lord presides over the case. Lawrence Litwack is the Receiver of the Debtor's property. GOLDEN LAND: Receiver, Creditor Seek to End Exclusive Periods ------------------------------------------------------------- Lawrence Litwack, Receiver, and secured creditor 37 Avenue Realty Associates have requested that Golden Land LLC's exclusive period to file a Plan of Reorganization be terminated so that the estate may be liquidated without delay. The movants contend that since the petition date, the Debtor has done nothing to move the case forward. The Receiver has been operating and maintaining the Debtor's Condominium complex since approximately one year prior to the petition date. The Debtor failed to file the required schedules, list of creditors, and statement of financial Affairs in this case until the Court issued a Show Cause Order. Neither the Debtor nor its attorney appeared at the June 26th status conference, nor the Sec. 341 creditor's meeting. Such inaction is the norm for the Debtor as it failed to participate in or appear in the state court foreclosure proceeding that pre-dates the filing of its chapter 11 petition. Because the Debtor has done nothing in the case since filing its petition, the movants contend that "cause" exists for terminating the exclusive period pursuant to Sec. 1121(d) of the Bankruptcy Code. A hearing has been scheduled for August 7th before Hon. Nancy Hershey Lord. Golden Land LLC filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 14-42315) in Brooklyn, New York, on May 8, 2014. The Debtor estimated assets and debt of $10 million to $50 million. Xiangan Gong, Esq., at Xiangan Gong serves as the Debtor's counsel. Judge Nancy Hershey Lord presides over the case. Lawrence Litwack is the Receiver of the Debtor's property. GOOD SHEPHERD: S&P Retains 'BB+' Rating on CreditWatch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services' 'BB+' long-term rating and underlying rating (SPUR) on Good Shepherd Health System, Texas' (Good Shepherd, or GSHS) bonds remain on CreditWatch with negative implications. The CreditWatch designation reflects S&P's view of the forbearance agreements signed on July 25, 2014, with Wells Fargo Municipal Capital Strategies LLC and JPMorgan Chase Bank N.A. The forbearance period extends to noon (Central Time) Dec. 31, 2014. "While the forbearance agreements provide GSHS with additional time to complete asset sales and further the system's turnaround initiatives, we continue to believe that the system faces significant credit risks, including the risk acceleration if individual elements of its turnaround plan prove unsuccessful," said Standard & Poor's credit analyst Karl Propst. "We will further evaluate the system's credit risks at key milestones, such as at the system's Sept. 30, 2014, fiscal year-end and on Oct. 15, 2014, when the asset sales are expected to be finalized," continued Mr. Propst. Standard & Poor's rating action applies to Gregg County Health Facilities Development Corp., Texas' series 2012C, 2002B, and 2006A bonds, and to Harrison County Health Facilities Development Corp., Texas' series 2010A bonds. Good Shepherd's total long-term debt outstanding at June 30 was $184 million. GREEN MOUNTAIN: Seeks to Reject Selwood Contract ------------------------------------------------ Green Mountain Management, LLC, et al., seek authority from the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, to reject the contract between Green Mountain and Michael J. Selwood, who was retained to provide financial and operational services prior to the Petition Date. In support of their request, the Debtors state, "In light of the large expense of employing Mr. Selwood ($20,000 a month) and Mr. Selwood's requested resignation, Debtors have decided, in their reasonable business judgment, to reject the Contract. The Contract is of no value to the Debtors' estates and the assumption of the same would only impose unnecessary administrative obligations on the estates. The Debtors have therefore determined that it is reasonable and in the best interest of their estates to reject the Contract in order to effectuate their reorganization. Further, rejecting the Contract nunc pro tunc to the Rejection Date is essential to preserving the value of Debtors' estates by avoiding unnecessary and unbeneficial post-petition expenses that Mr. Selwood may assert." Green Mountain Management, LLC, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ga. Case No. 14-64287) on July 25, 2014. The petition was signed by Daniel B. Cowart, sole member of Georgia Flattop Partners, LLC, and chairman of Green Mountain Management, LLC. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due Nov. 24, 2014. The Debtor estimated $10 million to $50 million in assets and debt. Georgia Flattop Partners, LLC is the managing member and holders of 93% of the stock. The case is assigned to Judge Barbara Ellis-Monro. The Debtor is represented by Sage M. Sigler, Esq., at Alston & Bird, LLP, in Atlanta. GREEN MOUNTAIN: Seeks Authority to Use UMB Bank Cash Collateral --------------------------------------------------------------- Green Mountain Management, LLC, et al., seek authority from the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, to use cash collateral in which UMB Bank, N.A., as indenture trustee, asserts that it has a security interest, and provide adequate protection on account of the cash collateral use. Green Mountain is party to a Mortgage and Trust Indenture, dated Aug. 1, 2010, with The Solid Waste Disposal Authority of the city of Adamsville, as "Issuer," and UMB Bank as "Trustee." Pursuant to the Trust Indenture, the Issuer issued its $17,000,000 Solid Waste Disposal Revenue Bonds, Series 2010, to finance the acquisition, construction and equipping of a solid waste disposal facility, including the underlying real property. As of the Petition Date, the outstanding principal balance due under the Bonds remained $17,000,000. The Cash Collateral will be used by the Debtors to fund their operations. Without the use the Cash Collateral, Debtors will have little choice but to terminate or suspend all operations and dismiss employees, thus destroying the value of their business during the pendency of the bankruptcy cases. Green Mountain Management, LLC, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ga. Case No. 14-64287) on July 25, 2014. The petition was signed by Daniel B. Cowart, sole member of Georgia Flattop Partners, LLC, and chairman of Green Mountain Management, LLC. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due Nov. 24, 2014. The Debtor estimated $10 million to $50 million in assets and debt. Georgia Flattop Partners, LLC is the managing member and holders of 93% of the stock. The case is assigned to Judge Barbara Ellis-Monro. The Debtor is represented by Sage M. Sigler, Esq., at Alston & Bird, LLP, in Atlanta. HOFFNER'S NURSERY: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Hoffner's Nursery, Inc. 104 Tree Farm Road Sebring, FL 33875 Case No.: 14-08915 Chapter 11 Petition Date: July 31, 2014 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Matthew J Kovschak, Esq. MATTHEW J. KOVSCHAK PA PO Box 989 Bartow, FL 33831-0989 Tel: 863-285-6808 Email: mjkovschak@aol.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jodi Hoffner, authorized individual. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/flmb14-08915.pdf IMH FINANCIAL: Restructures Debt; Appoints New Board Members ------------------------------------------------------------ IMH Financial Corporation entered into a series of agreements and transactions in connection with the refinancing of the senior secured convertible loan originally extended to the Company by NWRA Ventures I, LLC, on June 11, 2011. The Refinancing was generally comprised of three core components: (1) a $26.4 million convertible preferred equity tranche, led by Singerman Real Estate, LLC, and Juniper Capital Partners, LLC; (2) a $13.8 million contribution by the Company from its cash reserves; and (3) a restructuring of the existing senior loan with NWRA, which among other things, removed the loan's equity conversion rights and permits its payoff at $45 million. In addition, as part of the Refinancing, the Company acquired into treasury, 319,484 shares of its common stock, which had previously been held by an affiliate of NWRA. The Company believes the Refinancing will provide for significant savings related to future interest expense, consulting fees and other related costs, and will ultimately allow the Company to borrow funds and obtain future financing on more favorable terms. As part of the convertible preferred equity tranche, the Company issued and sold 5,595,148 shares of Series B-2 Preferred Stock to an affiliate of Singerman Real Estate, an experienced real estate investment firm that invests in both public and private companies. "Our company specializes in unlocking embedded value through ownership of real estate and real estate related assets," Singerman Real Estate President Seth Singerman said. "We believe that IMH is well-positioned for significant growth in relation to its legacy assets and through the prudent allocation of capital into future investments. We look forward to working with the IMH team to help further facilitate that growth." Additionally, the Company issued a total of 2,604,852 shares of Series B-1 Preferred Stock to affiliates of Juniper. "Juniper first became involved with IMH in 2011, as an investor in the original NWRA loan," Juniper Managing Member Jay Wolf said. "Since that time, our confidence in the Company has grown substantially. Although the refinancing transaction provided Juniper with the option to be fully paid out on its original investment, we elected to reinvest our entire position into the new preferred equity. We believe the Company's new capital structure will provide it with improved economic efficiencies and greater flexibility to grow its business. We very much look forward to being a part of IMH's future." In concert with the Refinancing, there were certain changes to the IMH executive team. Effective on the closing of the Refinancing, William Meris resigned as the Company's chief executive officer and president. Effective the same date, the Company appointed Lawrence D. Bain to serve as the Company's new chief executive officer. Mr. Bain has served as the Company's lead strategic consultant for the past five years with responsibilities relating to, among other things, asset recovery and disposition, guarantor enforcement and collection, capital formation, legal strategy, and underwriting. During that time, Mr. Bain was instrumental in advising the Company on the structuring and implementation of a majority of the Company's material corporate initiatives. The Company believes that Mr. Bain's in-depth knowledge of its business and its assets, coupled with his 35 years of financial industry and investment experience, will position him to help the Company drive future profitability and growth in shareholder value. The Company has also increased the Board of Directors from two members to seven members, and in addition to electing Mr. Bain to serve as Chairman of the Board of Directors, has elected Messrs. Singerman and Wolf to the Board of Directors, along with Independent Directors Leigh Feuerstein, Andrew Fishleder, M.D., Michael M. Racy, and Lori Wittman. Mr. Meris and Steven Darak, the Company's chief financial officer, resigned from the Board of Directors. Mr. Darak will continue to serve as the Company's Chief Financial Officer. Additional information regarding the Refinancing and related transactions is available for free at http://is.gd/QAI2gi About IMH Financial Scottsdale, Ariz.-based IMH Financial Corporation was formed from the conversion of IMH Secured Loan Fund, LLC, or the Fund, a Delaware limited liability company, on June 18, 2010. The conversion was effected following a consent solicitation process pursuant to which approval was obtained from a majority of the members of the Fund to effect the Conversion Transactions and involved (i) the conversion of the Fund from a Delaware limited liability company into a Delaware corporation named IMH Financial Corporation, and (ii) the acquisition by the Company of all of the outstanding shares of the manager of the Fund Investors Mortgage Holdings Inc., or the Manager, as well as all of the outstanding membership interests of a related entity, IMH Holdings LLC, or Holdings on June 18, 2010. IMH Financial reported a net loss of $26.20 million in 2013, a net loss of $32.19 million in 2012 and a net loss of $35.19 million in 2011. The Company's balance sheet at March 31, 2014, showed $224.76 million in total assets, $121.75 million in total liabilities, $5.28 million in fair value of puttable shares pursuant to legal settlement, and $97.72 million in total stockholders' equity. INTERNATIONAL MARKETS: S&P Assigns 'B' Corp. Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to International Markets Centers Inc. and its operating subsidiary, IM OP L.P. (collectively IMC). The outlook is stable. At the same time, S&P assigned a 'BB-' issue-level rating and a '1' recovery rating to the private REIT's proposed $405 million first-lien senior secured term loan, a 'BB-' rating and '1' recovery rating to the revolving credit facility, and a 'B-' issue-level and '5' recovery rating to the company's proposed $125 million second-lien term loan. The company will use proceeds from the proposed term loans to refinance its existing mortgage debt. "The ratings on IMC reflect our assessment of the company's business risk profile as 'weak'," said Standard & Poor's credit analyst Jaime Gitler. The company is the largest owner of real estate in the niche furniture showroom subsector, with 16 buildings located in High Point, N.C., and Las Vegas. While the company has a leading position in this narrow subsector, it is among the smallest REITs that we rate. Also, IMC's furniture tenants are highly reliant on end-user demand from consumers, and furniture sales are tied closely to home turnover, which has been very low over the past few years. We view the company's financial risk profile as "highly leveraged." S&P expects that debt to EBITDA will hover around 6.5x and debt to undepreciated capital will range between 60% and 65%. Although leverage and coverage measures appear materially stronger than "highly leveraged," S&P's opinion takes into consideration the company's ownership as a sponsored private-equity entity. S&P's assessment also takes into consideration the nature of the business, which is more akin to an operating business than is the case for other rated REITs. Formed in 2011, with the backing of private equity sponsors Bain Capital and Oaktree Capital, Las Vegas-based IMC owns 11.4 million square feet in two markets: High Point, N.C., and Las Vegas. The company's buildings cater to the furniture, home decor, and gift industries by hosting "market" weeks four times per year (twice in each market) which serve as a business-to-business gathering where manufacturers exhibit their wares to buyers, who see the latest industry offerings and plan future inventory stocking. Tenants (those with known revenues) typically pay on average about 1% to 2% of total annual sales for their exhibition space, and in some cases invest significant dollars building out their showrooms because a large portion of annual tenant sales are booked at these market events. This supports relatively high tenant renewal rates of more than 80%. High Point has served as the key furniture manufacturing market in the U.S. for decades and the company's properties have a history of general stability. The Las Vegas properties were constructed in the mid-2000s to compete with the more established High Point market, but operating performance suffered greatly during the financial crisis and the properties entered foreclosure proceedings. IMC acquired the properties at a substantial discount to cost (50%) during the financial crisis with the goal of creating distinct East and West Coast market events in their respective geographies. IMC's intent in amassing a large portion of the class A space in High Point was to garner more pricing power and reduce irrational pricing that had been prevalent in the market. S&P expects that rental rates in High Point will be stable to modestly up over the next few years. S&P also expects that occupancy will increase in the Las Vegas properties over the next several years with rents bottoming in 2014. The outlook is stable. IMC's operating performance has improved as occupancy at its Las Vegas properties has strengthened considerably over the past year. S&P expects occupancy and rents will grow further over the next two years as demand from furniture tenants continues to recover subsequent to the great recession. While S&P expects credit measures are stronger than similarly rated peers, its rating on the company is constrained by private- equity ownership. While unlikely in the near term, S&P could raise its ratings if the private-equity sponsors were to sell their stake down below a majority position, the company's debt stack transitions to largely fixed rate, and if operating performance from the Las Vegas properties strengthens such that S&P believes the company creates a viable West Coast showroom market. S&P could lower the ratings if the company's operating performance meaningfully stumbles which could occur if tenant demand deteriorates or a wave of consolidation hits the industry weakening occupancy and rental rates. ISR GROUP: Hearing to Consider Plan Outline Approval on Sept. 11 ---------------------------------------------------------------- The Bankruptcy Court for the Western District of Tennessee will hold a hearing on Sept. 11, 2014, at 11:00 a.m. to consider the approval of ISR Group, Incorporated's Disclosure Statement with respect to the Plan of Liquidation. On May 9, 2014, the Court gave the Debtor until Aug. 27, 2014, to file the Plan and Disclosure Statement. The Debtor filed on July 17, 2014, the Disclosure Statement, a copy of which is available for free at: http://bankrupt.com/misc/ISRGROUP_210_ds.pdf The Plan is the product of negotiations with various stakeholders in the Debtor, including TCFI and the Committee. Substantially all of the Debtor's assets have been sold through a private sale process overseen by the Court. The proceeds will be distributed to the holders of allowed claims in the priority and manner set forth in the Plan. Each holder of an allowed priority tax claim, in full satisfaction, will receive (a) cash in an amount equal to the allowed amount of the priority tax claim on the effective date, (b) to the extent the claim is not due and owing on the effective date, cash in an amount equal to the allowed amount of the Priority Tax Claim as and when due under applicable non-bankruptcy law, or (c) other treatment as is acceptable to the Debtor and the holder of the claim. Class 1 - DIP Loan Claim, Class 3 - IRS Tax Claims, Class 4 - TDR Tax Claim, and Class 6 - TCFI Secured Claim are unimpaired. The DIP Loan Claim and the TCFI Secured Claim have been satisfied in full under the terms of the sale order. Class 2 - Priority Wage Claims, Class 5 - Miscellaneous Secured Claims, Class 7 - General Unsecured Claims, and Class 8 - interests in the Debtor are impaired. Holders of Priority Wage Claims, $32,757 in TDR Tax Claim, and $5.65 million IRS Tax Claim will, in full satisfaction, be paid in (i) cash, or (ii) other, less favorable treatment to which the holders and the Debtor, the liquidation trustee -- to be named in a plan supplement -- or the advisory committee agree in writing. The Debtor believes the IRS Tax Claim is significantly overstated and that it will be significantly reduced or eliminated either by agreement or final court order. Each of the Priority Wage Claim will be allowed in the amount set forth in a priority wage claim schedule. Any portion of a Priority Wage Claim that exceeds the amount set forth in the schedule will be treated as a Class 7 General Unsecured Claim against the Debtor. Any Allowed Miscellaneous Secured Claim that is senior to the TCFI Secured Claim will be satisfied in accordance with the terms of the sale order. Any Allowed Miscellaneous Secured Claim that is junior to the TCFI Secured Claim will be treated as a Class 7 General Unsecured claim. Each holder of an Allowed General Unsecured claim will receive, in full satisfaction, a Pro Rata share of the liquidation trust assets. The liquidation trust asset include the buyer EBITDA contribution. Any portion of an Allowed General Unsecured Claim that consists of statutory damages will be subordinated to all other Allowed General Unsecured Claims. Holders of Allowed General Unsecured Claims including statutory damages will get no distribution on account of the statutory damages unless and until all other Allowed General Unsecured Claims have been paid in full. Holders of Allowed General Unsecured claims including statutory damages must be paid in full with interest at the federal funds rate in effect as of the effective date prior to any distribution to the buyer. Interests in the Debtor will be deemed canceled and extinguished as of the dissolution date. The holders won't receive any distributions under the Plan on account of their interests. The Plan contemplates the rejection of all excluded contracts as of the effective date. Any rejection claim arising from the rejection of an excluded contract will be treated as a general unsecured claim pursuant to the Plan. Court Okays Amended Sale Motion On June 17, 2014, the Court entered an order granting the amended motion for authorization of the sale of substantially all of the Debtor's assets free and clear of claims, liens, and encumbrances, to TCFI IG LLC. On June 4, 2014, the Debtor filed an amended motion for entry of an order approving the sale. A hearing on the amended sale motion was set for June 12, 2014. A copy of the amended sale motion is available for free at: http://bankrupt.com/misc/ISRGROUP_132_sale.pdf The Asset Purchase Agreement provides for the acquisition consideration detailed in Section 2.6 of the APA, which includes, inter alia, (i) a credit bid of $18.39 million, consisting of the principal and estimated interest, costs, fees, charges, or other obligations accrued and unpaid under the Credit Agreement and DIP Credit Agreement; (ii) a cash payment of $374,769.91, provided that the cash will be used exclusively for payments to creditors with unsecured priority claims under Sections 507(a)(4) and 507(a)(5) of the Bankruptcy Code; and (iii) the assumption of certain liabilities. In addition, the Purchaser has agreed to provide additional consideration to the Debtor and its estate as set forth in Debtor's motion pursuant to Section 105 and Bankruptcy Rule 9019 to approve global settlement agreement. The APA constitutes the highest and best offer for the acquired assets, and will provide a greater recovery for the Debtor's estate than would be provided by any other available alternative. The Purchaser is represented by: Ian T. Peck, Esq. Haynes And Boone, LLP 201 Main Street, Suite 2200 Fort Worth, Texas 76102 Tel: (817) 347-6613 Fax: (817) 348-2350 E-mail: ian.peck@haynesboone.com On May 13, 2014, the Debtor first filed its motion for authorization to sell its assets. The Stalking Horse Bidder proposed to acquire the Acquired Assets for (i) a credit bit of $18.21 million, consisting of the principal and estimated interest, costs, fees, charges, or other obligations accrued and unpaid under the loan agreement, dated as of March 28, 2012, by and among PNC Bank, the Debtor, and ISR Group Holdings, Inc., and DIP financing amendment and first amendment to loan agreement; (ii) a cash payment of $300,000, provided that the cash will be used exclusively for payments to creditors with unsecured priority claims under Sections 507(a)(4) and 507(a)(5) of the Bankruptcy Code who agree to work for Purchaser after the Closing on terms satisfactory to Purchaser; and (iii) the assumption of certain liabilities. The hearing to consider the first sale motion was set for May 29, 2014. A copy of the motion is available for free at: http://bankrupt.com/misc/ISRGROUP_67_sale.pdf On May 29, 2014, Samuel K. Crocker, the U.S. Trustee for Region 8, objected to the first sale motion, claiming that the Debtor hadn't demonstrated that a sound business purpose dictates that the proposed sale be approved, and didn't demonstrate the adequacy of pre- or post-petition efforts to market a sale of the Debtor's assets. The U.S. Trustee added that, among other things, the Debtor hadn't demonstrated how it computed what credit-bid amount would be appropriate. The motion proposed that the stalking horse bidder, the current holder of the secured indebtedness, be allowed to credit-bid $18.21 million. The Court issued on June 13, 2014, an order withdrawing the Debtor's May 21, 2014 expedited motion for authorization to pay third-party data hosting vendor in connection with the sale of the Debtor's assets. The Debtor had requested that the Court enter an order authorizing the Debtor to pay Intralinks, Inc., to host certain data online in connection with the sale of the Debtor's assets for three months for $3,500. The Court had set for May 29, 2014, the hearing to consider the motion. Settlement Okayed On June 17, 2014, the Court approved the Debtor's global settlement agreement with the Committee, the Debtor's secured lender, and the U.S. Trustee. A copy of the settlement is available for free at: http://bankrupt.com/misc/ISRGROUP_137_globalagreement.pdf The Debtor sought on June 6, 2014, court approval for its settlement agreement, which will avoid the expense, delay, and distraction of litigation over the relevant questions of law and fact. Given the limited resources of the Debtor's estate, litigation over these issues will not benefit the estate or its creditors, the Debtor stated in its motion. Absent the settlement, the Debtor may be required to litigate with the Committee and the U.S. Trustee. The Debtor's major creditor constituencies support the settlement, and the settlement will move the Debtor forward in selling its assets and confirming the Plan. A hearing was set for June 12, 2014, to consider the approval of the settlement. About ISR Group ISR Group, Incorporated, filed a Chapter 11 bankruptcy petition (Bankr. W.D. Tenn. Case No. 14-11077) on April 29, 2014. John Stuecheli signed the petition as chief restructuring officer. The Debtor estimated $10 million to $50 million in assets and liabilities. Franklin Childress, Jr., Esq., at Baker Donelson Bearman, serves as the Debtor's counsel. Judge Jimmy L Croom presides over the case. J.A.D HOSPITALITY: Case Summary & 4 Unsecured Creditors ------------------------------------------------------- Debtor: J.A.D Hospitality, LLC dba Cloverdale Oaks Inn 123 S. Cloverdale Blvd Cloverdale, CA 95425 Case No.: 14-11128 Chapter 11 Petition Date: July 31, 2014 Court: United States Bankruptcy Court Northern District of California (Santa Rosa) Judge: Hon. Alan Jaroslovsky Debtor's Counsel: Kayla Grant, Esq. GALANTI AND COPENHAVER, INC. 1180 4th St. Santa Rosa, CA 95404 Tel: (707) 538-6074 Email: kayla@galantilawgroup.com Total Assets: $663,220 Total Liabilities: $1.06 million The petition was signed by Jayendra A. Patel, managing member. A list of the Debtor's four largest unsecured creditors is available for free at http://bankrupt.com/misc/canb14-11128.pdf JACKSONVILLE BANCORP: Regains Compliance with NASDAQ Rule --------------------------------------------------------- Jacksonville Bancorp, Inc., on July 31, 2014, received written notice from the Listing Qualifications staff of The Nasdaq Stock Market stating that the Company had not been in compliance with Nasdaq Listing Rule 5605(d)(2), which requires that the Company maintain a compensation committee comprised solely of independent directors. The Notice was prompted by the service of the Company's director, Price W. Schwenck, on the Company's Organization and Compensation Committee since September 2013. When the Company became aware of the noncompliance, it took action immediately, and Mr. Schwenck resigned from the Compensation Committee on July 31, 2014. In the same Notice, the Nasdaq Listing Qualifications staff confirmed that the Company regained compliance with the Nasdaq Listing Rule 5605(d)(2) as a result of Mr. Schwenck's resignation, and advised that the matter is now closed. The Company is currently compliant with Nasdaq's compensation committee composition requirements. About Jacksonville Bancorp Jacksonville Bancorp, Inc., a bank holding company, is the parent of The Jacksonville Bank, a Florida state-chartered bank focusing on the Northeast Florida market with eight full-service branches in Jacksonville, Duval County, Florida, as well as the Company's virtual branch. The Jacksonville Bank opened for business on May 28, 1999, and provides a variety of community banking services to businesses and individuals in Jacksonville, Florida. Jacksonville Bancorp reported a net loss available to common shareholders of $32.42 million on $22.93 million of total interest income for the year ended Dec. 31, 2013, as compared with a net loss available to common shareholders of $43.04 million on $26.25 million of total interest income for the year ended Dec. 31, 2012. The Company reported a net loss available to common shareholders of $24.05 million in 2011. The Company's balance sheet at March 31, 2014, showed $496.77 million in total assets, $462.27 million in total liabilities and $34.50 million in total shareholders' equity. JACOBS FINANCIAL: Malin Bergquist Resigns as Accountant ------------------------------------------------------- Malin, Bergquist & Company, LLP, resigned from Jacobs Financial Group, Inc., effective July 17, 2014, as its independent registered public accounting firm as a result of a merger. The Board of Directors of the Company accepted Malin's resignation. Neither the report of Malin for the years ended May 31, 2011, and 2012, contained an adverse opinion or disclaimer of opinion, or was qualified or modified as to uncertainty, audit scope or accounting principles, except that the Company's audited financial statements in its Form 10-K for the years ended May 31, 2011 and 2012 contained a going concern qualification. The Company has had no disagreements with Malin, whether or not resolved, on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to Malin's satisfaction would have caused them to make reference to the subject matter of the disagreement in connection with their reports on the financial statements. The Company has engaged EKS&H LLLP as its independent registered public accountant. The engagement was approved by the Company's Board of Directors on July 29, 2014. EKS&H will provide audit and review services, including the immediate audit of the Company's financial statements and schedules supporting the financial statements which will be included in a proposed Form 10-K filing for the fiscal year ended May 31, 2013. About Jacobs Financial Jacobs Financial Group, Inc. (OTC Bulletin Board: JFGI) is a Charleston, West Virginia-based holding company for First Surety Corporation, a West Virginia domiciled surety, Triangle Surety Agency, an insurance agency that specializes in coal reclamation surety bonds, and Jacobs & Company, a registered investment advisor. Jacobs Financial reported a net loss of $1.10 million for the year ended May 31, 2012, compared with a net loss of $1.30 million during the prior fiscal year. The Company's balance sheet at Feb. 28, 2013, showed $8.63 million in total assets, $17.17 million in total liabilities, $1.89 million in total mandatorily redeemable convertible preferred stock, and a $10.43 million total stockholders' deficit. In the auditors' report accompanying the consolidated financial statements for the year ended May 31, 2012, Malin, Bergquist & Company, LLP, in Pittsburgh, PA, noted that the Company's significant net working capital deficit and operating losses raise substantial doubt about its ability to continue as a going concern. JAMES RIVER: Proofs of Claim Deadline Set for Sept. 22 ------------------------------------------------------ Creditors of James River Coal Company must file their proofs of claims not later than Sept. 22, 2014 at 5:00 p.m. Furthermore, the deadline for Government Units to file their proofs of claim is set for Oct. 6, 2014. Proofs of claim must be sent to: The James River Coal Company Claims Processing Center c/o Epiq Bankruptcy Solutions LLC FDR Station, PO Box 5015 New York New York 10150-5015 About James River James River Coal Company is a producer and marketer of coal in the Central Appalachia ("CAPP") and the Midwest coal regions of the United States. James River's principal business is the mining, preparation and sale of metallurgical coal, thermal coal (which is also known as steam coal) and specialty coal. James River and 33 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Va. Case Nos. 14-31848 to 14-31886) in Richmond, Virginia, on April 7, 2014. The petitions were signed by Peter T. Socha as president and chief executive officer. Judge Kevin R. Huennekens oversees the Chapter 11 cases. On the Petition Date, James River Coal disclosed total assets of $1.06 billion and total liabilities of $818.6 million. Davis Polk & Wardwell LLP serves as the Debtors' counsel. Hunton & Williams, LLP, acts as the Debtors' local counsel. Kilpatrick Townsend & Stockton LLP serves as the Debtors' special counsel. Perella Weinberg Partners L.P. is the Debtors' financial advisor. Deutsche Bank Securities Inc. serves as the Debtors' investment banker and M&G advisor. Epiq Bankruptcy Solutions, LLC, acts as the debtors' notice, claims and administrative agent. The U.S. Trustee for Region 4 has appointed five creditors to the Official Committee of Unsecured Creditors. Michael S. Stamer, Esq., Alexis Freeman, Esq., and Jack M. Tracy II, Esq., at Akin Gump Strauss Hauer & Feld LLP; and Jonathan L. Gold, Esq., Christopher L. Perkins, Esq., and Christian K. Vogel, Esq., at LeClairRyan. * * * The Debtors have been granted an extension of their exclusive plan filing period through Nov. 12, 2014, and their exclusive solicitation period through Jan. 12 next year. KEMET CORP: Files Form 10-Q, Incurs $3.5MM Net Loss in Q2 --------------------------------------------------------- Kemet Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing 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 quarter ended June 30, 2013. The Company's balance sheet at June 30, 2014, showed $838.64 million in total assets, $620.39 million in total liabilities and $218.25 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/ZzfK28 Kemet filed a Form S-8 with the SEC to register 2,600,000 shares of common stock issuable under the Company's 2014 Amendment and Restatement of the KEMET Corporation 2011 Omnibus Equity Incentive Plan. The proposed maximum aggregage offering price is $13.07 million. The Plan was approved by the board of directors of the Company on April 30, 2014, and by the stockholders of the Company on July 24, 2014. A copy of the prospectus is available at: http://goo.gl/gGTyXS 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." * * * 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. KID BRANDS: Sassy Inc. Assets to Be Sold to Angelcare for $14MM --------------------------------------------------------------- Sassy, Inc., a wholly-owned subsidiary of Kid Brands Inc., entered into an Asset Purchase Agreement dated as of July 25, 2014, with Sassy 14, LLC, a Delaware limited liability company, and Angelcare Monitors, Inc., a Canadian corporation, whereby, as authorized under Sections 105, 363 and 365 of Chapter 11 of the Bankruptcy Code, Sassy would sell certain assets of Sassy and other assets of affiliates of Sassy used primarily in the operation of Sassy's business of designing, importing, marketing and distributing certain branded infant and juvenile products, including developmental toys and feeding, bath and baby care items. The transaction will be subject to approval of the Bankruptcy Court and will be consummated only pursuant to a sale order to be entered in the Bankruptcy Case and other applicable provisions of the Bankruptcy Code. The Sassy Agreement provides for cash consideration to be paid by the Purchaser equal to the sum of $14,000,000, certain monetary amounts in connection with the assumption and/or assignment of certain assumed agreements, certain employee costs, and certain deposits or other payments related to manufacturing orders made by Seller after execution of the Sassy Agreement and prior to the closing of the transaction, subject to a potential purchase price adjustment based on Sassy's working capital as of the closing date, plus the assumption of certain agreements and other obligations. The Agreement requires the Purchaser to deliver to Sassy a cash deposit equal to $1,000,000 within two business days after the signing of the Sassy Agreement, to be held in escrow by Lowenstein Sandler LLP as escrow agent, which deposit has been delivered. The transaction is subject to certain closing conditions, including approval by the Bankruptcy Court of the transaction and the assumption and assignment of the contracts (including real property leases) to be transferred to the Sassy Purchaser in connection with the transaction. The Agreement includes certain customary representations and warranties and covenants. Pursuant to the Sassy Agreement, the parties have also agreed to enter into a Transition Services Agreement, for a term that will terminate on or before December 31, 2014, pursuant to which the parties have each agreed to provide to the other certain services necessary for the operation of the Sassy Business and the continued operation in bankruptcy of the remaining business of the Company and its affiliates. The receiving party of the services will generally reimburse to the providing party the actual, out- of-pocket cost of any such services. As reported by the Troubled Company Reporter, Kids Line, LLC and CoCaLo, Inc. -- the so-called Soft Home entities -- on July 24 entered into an Asset Purchase Agreement with Crown Crafts Infant Products, Inc., a wholly-owned subsidiary of Crown Crafts, Inc., whereby Soft Home would sell to Crown certain assets of Soft Home, consisting primarily of trademarks, internet domain names and related intangible assets, including the Kidsline(R) and CoCaLo(R) brand names. The transaction will be subject to approval of the Bankruptcy Court and will be consummated only pursuant to a sale order to be entered in the Bankruptcy Case and other applicable provisions of the Bankruptcy Code. The Soft Home Agreement provides for cash consideration to be paid by the Soft Home Purchaser at the closing equal to $1,350,000. The transaction is subject to certain closing conditions, including approval by the Bankruptcy Court of the transaction. The Soft Home Agreement includes certain customary representations and warranties and covenants. Both transactions under the Soft Home Agreement and the Sassy Agreement are subject to higher and better offers that may be made at a Bankruptcy Court hearing authorizing such transactions. 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. GRL's Glenn Langberg served as the Debtors' chief restructuring officer. Mr. Langberg also oversaw the bankruptcy and sales of Big M Inc., operator of the Mandee and Annie Sez stores. Rust Consulting/Omni Bankruptcy is the Debtors' claims and noticing agent. Salus Capital Partners LLC and Sterling National Bank have committed to provide up to $49 million in DIP financing to the Debtors. KIDSPEACE CORP: Court Allows Plan to Become Effective ----------------------------------------------------- The Hon. Richard E. Fehling of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania entered on July 16, 2014, an order authorizing KidsPeace Corporation and its debtor-affiliates' First Modified Joint Chapter 11 Plan to become effective notwithstanding certain additional financial disclosures. The Debtors won't be required to file a further disclosure statement, no further solicitation of the Plan will be required, and the Plan is deemed accepted by all creditors who have previously accepted the Plan. The Plan may become effective, subject to the satisfaction of the conditions precedent set forth in Section 12.2 of the Plan, notwithstanding the additional financial disclosures, which disclosures are not modifications to the Plan and which are non-material for purposes of proceeding to consummation of the Plan. As reported by the Troubled Company Reporter on May 5, 2014, the Court issued an order confirming the Plan. Bill Rochelle, the bankruptcy columnist for Bloomberg News, related that Pension Benefit Guaranty Corporation will be paid $13.5 million in installments for its claim of about $110 million arising from underfunded pension plan. According to the Bloomberg report, the general unsecured creditors with $2.5 million in claims take 15% in three installments, and that the bondholders' deficiency claims and the PBGC's claim won't participate in the pool for unsecured creditors. On June 30, 2014, the Court authorized the Debtors to modify the Plan to extend the effective date deadline. The hearing on the Debtors' request for authorization that the Plan become effective notwithstanding certain additional financial disclosures was adjourned to July 16, 2014, at 11:00 a.m. The effective date deadline, as set forth in Section 12.3 of the Plan, was modified and extended through and including Aug. 31,2014. About KidsPeace Corp. KidsPeace Corp., a provider of behavioral services for children, filed a petition for Chapter 11 reorganization (Bankr. E.D. Pa. Case No. 13-14508) on May 21, 2013, in Reading, Pennsylvania. KidsPeace operates a 96-bed pediatric psychiatric hospital in Orefield, Pennsylvania. Assets are $86.7 million, and debt on the books is $158.6 million, according to a court filing. The Debtor, which sought bankruptcy protection with eight affiliates, tapped Norris McLaughlin & Marcus, P.A. as counsel; EisnerAmper LLP as financial advisor, and Rust Omni as claims and notice agent. Assets total $158,587,999 at the end of 2012. The Debtors owe approximately $56,206,821 in bond debt, and they have been told that their pension liability is allegedly about $100,000,000 of which the Debtors currently reflect $83,049,412 on their books. KidsPeace sought Chapter 11 (i) as a means to implement a negotiated restructuring of bond debt currently aggregating approximately $51,310,000 plus accrued interest to a reduced amount of approximately $24 million in new 30-year bonds with interest at 7.5 percent, and (ii) to continue on-going negotiations with the Pension Benefit Guaranty Corporation in hopes of reducing the PBGC asserted obligation of $100+ million to an amount that the Debtors can reasonably expect to satisfy. The Debtor disclosed $157,930,467 in assets and $168,768,207 in liabilities as of the Chapter 11 filing. Since March 2012, MK has been exploring possible affiliation or acquisition opportunities; however, no offer of an affiliation or acquisition has been presented to the Debtors. Gemino Healthcare Finance, LLC, the prepetition revolving lender, is represented by James S. Rankin, Jr., Esq., at Parker, Hudson, Rainer & Dobbs LLP; and Weir & Partners LLP's Walter Weir, Jr., Esq. UMB Bank, N.A., on behalf of bondholders, Performance Food Group d/b/a AFI, W.B. Mason Co., Inc., Pension Benefit Guaranty Corporation, and Teresa Laudenslager were appointed to an official committee of unsecured creditors in the Debtors' cases. The Official Committee of Unsecured Creditors is represented by Fitzpatrcik Lentz & Bubba, P.C., and Lowenstein Sandler LLP as counsel. FTI Consulting, Inc., serves as the panel's financial advisor. LEHMAN BROTHERS: Raises Estimate of Recovered Funds to $88.8B ------------------------------------------------------------- Patrick Fitzgerald, writing for The Wall Street Journal, reported that the team unwinding Lehman Brothers Holdings Inc. now estimates that they will bring in $88.8 billion, buoyed by gains on its real estate, derivatives and private-equity investments along with recoveries from settlements with foreign affiliates. According to the report, citing a court filing, Lehman said it is boosting its estimated gross recoveries by $8.3 billion over last year's estimate. The Journal related that of the new estimate, Lehman's unwinding of its commercial real estate holdings, derivatives positions and loan portfolio are expected to bring in $3.7 billion in the coming years. Another chunk of cash, some $2.7 billion, is expected to come from gains on Lehman's still-extensive private-equity holdings and investments, including Lehman's stakes in energy company Antero Resources LLC, manufacturer Firth Rixson Ltd. and payment processor First Data Holdings, Inc., the report related. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LIBERTY INTERACTIVE: FTD Transaction No Impact on Fitch Ratings --------------------------------------------------------------- In Fitch Ratings' view, the Issuer Default Rating (IDR) and Stable Outlook on Liberty Interactive Corporation are unaffected by the announced delay of its tracking stock restructuring and sale of Provide Commerce Inc. to FTD Companies, Inc. (FTD). Fitch does not expect either of these announcements to delay Liberty's intentions to spin-off its 22% equity/57% voting interest in TripAdvisor Inc. (TRIP) and its BuySeasons Inc. business. The companies have entered into a definitive agreement where FTD will acquire Liberty's Provide Commerce businesses, excluding RedEnvelope, for a total transaction value of $430 million. Liberty will receive 10.2 million shares of FTD, or approximately 35% of shares to be outstanding, (a $309 million value based on volume weighted price of FTD shares over 10 days) and $121 million in cash. Further, FTD's board will be increased from seven members to 11 members, with Liberty selecting the new four members. The transaction is expected to close by yearend, subject to approval from regulators and FTD's shareholders. Fitch expects cash proceeds will be used for general corporate purposes. The equity stake in FTD is expected to be part of the Liberty Interactive tracking stock. Fitch's ratings materially rely on QVC, with Liberty's other investments viewed as incremental support to the ratings. Fitch does not ascribe a material weight to the e-commerce businesses when assessing the consolidated credit profile. These businesses are relatively small in size, accounting for approximately 4% of consolidated Liberty EBITDA. Liberty's e-commerce companies continue to have revenue growth with a year-over-year increase of 6.6% for the latest 12 month (LTM) period ending March 31, 2014. However, EBITDA continues to be pressured, down 3.1% due to continuing challenges in the businesses. While margins and EBITDA levels have been negatively affected, they remain positive and contribute positive cash flows to the consolidated credit. In October 2013, Liberty announced its plans to separate LINTA/B into: Liberty Digital Commerce (LDCA/B), which would hold the e- commerce companies attributed to it, and QVC (QVCA/B), which will hold QVC and the 38% HSN, Inc. stake. Yesterday, Liberty announced that it is reevaluating the optimal structure for its Digital Commerce assets due to the sale of Provide Commerce Inc., delaying the planned separation of Liberty Interactive tracking stock (LINTA/B) into two tracking stocks. Provide Commerce generated an estimated $600 million in revenue; approximately 35% of the e- commerce companies total revenues ($1.7 billion at LTM ended March 31, 2014). For more details, please see 'Fitch Affirms Liberty Interactive LLC's IDR at 'BB'; Outlook Stable' (Oct. 10, 2013). Fitch's ratings for Liberty and QVC reflect the consolidated legal entity/obligor credit profile, rather than the tracking stock structure. Based on Fitch's interpretation of the Liberty bond indentures, the company could not spin out QVC without consent of the bondholders, based on the current asset mix at Liberty. QVC generates 84% and 98% of Liberty's revenues and EBITDA, respectively. In addition, Fitch believes QVC makes up a meaningful portion of Liberty's equity value. Any spin-off of QVC would likely trigger the 'substantially all' asset disposition restriction within the Liberty indentures. Fitch does not expect any material change in leverage as a result of the transaction, due to the nominal EBITDA generated by Provide Commerce relative to the consolidated EBITDA generated by Liberty. As of March 31, 2014, Fitch calculates QVC's unadjusted gross leverage at 2.1x and Liberty's unadjusted gross leverage at 3.9x (excludes TripAdvisor's debt and EBITDA). Fitch believes Liberty continues to carry meaningful liquidity with $1.2 billion in cash (ex-TRIP), $1.9 billion of availability on QVC's $2 billion revolver (expires March 2018), and $4.1 billion in other public holdings (ex-TRIP) as of March 31, 2014. Fitch calculates free cash flow (FCF) of $1.1 billion (ex-TRIP) in the LTM period. Based on Fitch's conservative projections, Fitch expects Liberty's FCF to be in the range of $750 million to $1 billion for fiscal 2014. Fitch currently rates Liberty and QVC as follows: Liberty -- Issuer Default Rating (IDR) 'BB'; -- Senior unsecured debt 'BB'. QVC -- IDR 'BB'; -- Senior secured debt 'BBB-'. The Rating Outlook is Stable. LUCID INC: Suspending Filing of Reports with SEC ------------------------------------------------ Lucid, Inc., filed with the U.S. Securities and Exchange Commission a Form 15 to terminate the registration of its common stock, par value $0.01 per share, and warrants. As of July 31, 2014, there were 179 holders of the securities. As as result of the Form 15 filing, the Company is not anymore obliged to file periodic reports with the SEC. The Company separately filed a post-effective amendment relating to its registration statement on Form S-8 pertaining to the registration of: (i) 1,981,500 shares of the Company's common stock, $0.01 par value per share, issuable under the Company's 2010 Long-Term Equity Incentive Plan; (ii) 865,000 Common Shares, issuable under the Company's 2007 Long-Term Incentive Plan; and (iii) 342,774 Common Shares, issuable under the Company's Year 2000 Stock Option Plan, which was filed with the Securities and Exchange Commission on July 19, 2012. The Company removed from registration all securities registered under the Registration Statement that remain unsold. About Lucid Inc. Rochester, N.Y.-based Lucid, Inc., is a medical device company that designs, manufactures and sells non-invasive cellular imaging devices enabling physicians to image and diagnose skin disease in real time without an invasive or surgical biopsy. Lucid reported a net loss of $5.47 million on $3.34 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $9.82 million on $2.43 million of revenues in 2012. As of Dec. 31, 2013, the Company had $2.40 million in total assets, $14.90 million in total liabilities and a $12.49 million total stockholders' deficit. Marcum LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's recurring losses from operations, deficit in equity, and projected need to raise additional capital to fund operations raise substantial doubt about its ability to continue as a going concern. Bankruptcy Warning "As of December 31, 2013, we had approximately $12.0 million of outstanding debt. We cannot be sure that our future working capital or cash flows, combined with any funds resulting from our current fund raising efforts, will be sufficient to meet our debt obligations and commitments. Any failure by us to repay such debt in accordance with its terms or to renegotiate and extend such terms would have a negative impact on our business and financial condition, and may result in legal claims by our creditors. In addition, the existence of our outstanding debt many hinder or prevent us from raising new equity or debt financing. Our ability to make scheduled payments on our debt as they become due will depend on our future performance and our ability to implement our business strategy successfully. Failure to pay our interest expense or make our principal payments would result in a default. A default, if not waived, could result in acceleration of our indebtedness, in which case the debt would become immediately due and payable. If this occurs, we may be forced to sell or liquidate assets, obtain additional equity capital or refinance or restructure all or a portion of our outstanding debt on terms that may be less favorable to us. In the event that we are unable to do so, we may be left without sufficient liquidity and we may not be able to repay our debt and the lenders may be able to foreclose on our assets or force us into bankruptcy proceedings or involuntary receivership," the Company said in the Annual Report for the year ended Dec. 31, 2013. MANISTIQUE PAPERS: Lowenstein Fees May be Paid From Remark Deal --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Manistique Papers Liquidation Company, Inc., sought and obtained permission from the U.S. Bankruptcy Court to modify the retention of its counsel, Lowenstein Sandler LLP. The panel is allowed to pay Lowenstein Sandler from certain settlement proceeds. All outstanding fees and expenses of Lowenstein Sandler previously approved by orders of the Court are to be paid directly from the Settlement Proceeds without delay. The subject Settlement stems from lawsuits related to Remark Paper Company, Inc. The initial lawsuit was commenced by the Debtor on January 12, 2012, styled Manistique Papers, Inc. v. Remark Paper Company, Adv. Proc. No. 12-50052 (the "Remark Lawsuit"). A second lawsuit was filed by the Official Committee of Unsecured Creditors on December 26, 2012, on behalf of the Debtor's estate against (i) Remark, (ii) DDFKD Investments, LP, (iii) Donald P. Kramer and Dennis Kramer (iv) Merit Mezzanine Parallel Fund IV, L.P., Merit Mezzanine Fund IV, L.P. and Merit Capital Partners IV, L.P. d/b/a Merit Capital Partners, (v) Thomas Campion and Evan Gallinson, and (vi) Jon Johnson (collectively, the "Defendants"). The lawsuit is styled as Official Committee of Unsecured Creditors of Manistique Papers, Inc. v. Remark Paper Company, et al, Adv. Proc. No. 12- 51307. The Committee sought and obtained permission from the Court for standing to commence the action after a very contested hearing. Thereafter, with significant involvement by the Committee, the parties to the Lawsuits and Philadelphia Indemnity Insurance Company, as insurer to certain of the Defendants, entered into negotiations which ultimately led to the settlement of the Lawsuits on these terms: (a) Philadelphia, on behalf of the Merit Directors, Johnson, Donald P. Kramer, and Dennis Kramer, agreed to pay to the Debtor $1,215,000; and (b) The Kramers agreed to pay to the Debtor $10,000. The Committee obtained Court approval of the Settlement back in mid-February. About Manistique Papers Manistique Papers Inc. operates a landfill in Manistique, Michigan, whereby residuals resulting from paper production are deposited. It owns a 125,000 ton-a-year plant making specialty papers from recycled fiber. Manistique Papers filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-12562) on Aug. 12, 2011. Godfrey & Kahn, S.C. represents the Debtor in its restructuring effort. Morris, Nichols, Arsht & Tunnell LLP serves as its Delaware bankruptcy co-counsel. Vector Consulting, L.L.C., serves as its financial advisor. Baker Tilly Virchow Krause, LLC, serves as its accountant. The Official Committee of Unsecured Creditors appointed in the case is represented by Lowenstein Sandler PC as lead counsel and Ashby & Geddes, P.A., as Delaware counsel. J.H. Cohn LLC serves as the panel's financial advisor. Manistique Papers disclosed $19,688,471 in assets and $24,633,664 in liabilities as of the Chapter 11 filing. MARINA BIOTECH: Pryor Cashman Holds 4.9% Equity Stake ----------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, Pryor Cashman LLP disclosed that as of July 22, 2014, it beneficially owned 1,255,550 shares of common stock of Marina Biotech, Inc., representing 4.9 percent based on 25,626,450 shares of common stock outstanding as of July 14, 2014, as reported on the Issuer's annual report on Form 10-K for the fiscal year ended Dec. 31, 2012. Pryor Cashman previously owned 1,586,959 common shares of the Company at Dec. 31, 2013. A full- text copy of the regulatory filing is available for free at: http://is.gd/xpdFTb About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. KPMG LLP, in Seattle, expressed substantial doubt about Marina Biotech's ability to continue as a going concern following the 2011 financial results. The independent auditors noted that the Company has ceased substantially all day-to-day operations, including most research and development activities, has incurred recurring losses, has a working capital and accumulated deficit and has had recurring negative cash flows from operations. As reported by the TCR on May 21, 2014, KPMG LLP was dismissed as the principal accountants for Marina Biotech, Inc., and Wolf & Company, P.C., had been engaged as replacement. Marina Biotech reported a net loss of $9.54 million in 2012, as compared with a net loss of $29.42 million in 2011. MAUI LAND: Reports $477,000 Net Income in Second Quarter -------------------------------------------------------- Maui Land & Pineapple Company, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $477,000 on $5 million of total operating revenues for the three months ended June 30, 2014, as compared with net income of $831,000 on $2.55 million of total operating revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $432,000 on $7.47 million of total operating revenues as compared with a net loss of $984,000 on $5.18 million of total operating revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $51.9 million in total assets, $79.03 million in total liabilities and a $27.13 million stockholders' deficiency. At June 30, 2014, the Company's total debt was $48.8 million, compared to $49 million at Dec. 31, 2013, and the Company had approximately $0.2 million in cash and cash equivalents. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/8Hpmcz About Maui Land & Pineapple Co. Maui Land & Pineapple Company, Inc. (NYSE: MLP) -- http://mauiland.com/-- develops, sells, and manages residential, resort, commercial, and industrial real estate. The Company owns approximately 23,000 acres of land on Maui and operates retail, utility operations, and a nature preserve at the Kapalua Resort. The Company's principal subsidiary is Kapalua Land Company, Ltd., the operator and developer of Kapalua Resort, a master-planned community in West Maui. Maui Land reported a net loss of $1.16 million on $15.21 million of total operating revenues for the year ended Dec. 31, 2013, as compared with a net loss of $4.60 million on $13.57 million of total operating revenues in 2012. Deloitte & Touche LLP, in Honolulu, Hawaii, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The indepdendent auditors noted that the Company's recurring negative cash flows from operations and deficiency in stockholders' equity raise substantial doubt about the Company's ability to continue as a going concern. MISSION NEW ENERGY: Had A$458,000 in Cash at June 30 ---------------------------------------------------- Mission New Energy Limited filed with the U.S. Securities and Exchange Commission its Appendix 4C (Quarterly Report for entities admitted on the basis of commitments) for the quarter ended June 30, 2014. At the beginning of the quarter, the Company had A$1 million in cash. The Company reported a decrease in cash held of A$514,000 and exchange rate adjustment of A$34,000. As a result, the Company had A$458,000 in cash at June 30, 2014. The Company reported A$0 receipts from customers during the quarter. The Company paid A$179,000 in wages. A full-text copy of the Quarterly report is available for free at: http://goo.gl/aNf8na About Mission NewEnergy Based in Subiaco, Western Australia, Mission NewEnergy Limited is a producer of biodiesel that integrates sustainable biodiesel feedstock cultivation, biodiesel production and wholesale biodiesel distribution focused on the government mandated markets of the United States and Europe. The Company is not operating its biodiesel refining segment. The refineries are being held in care and maintenance either awaiting a return to positive operating conditions or the sale of assets. The Company has materially diminished its Jatropha contract farming operation and the company is now focused on divesting the remaining Indian assets. The Company intends to cease all Indian operations. The Company's balance sheet at Dec. 31, 2013, showed $4.92 million in total assets, $13.96 million in total liabilities and a $9.04 million total deficiency. Mission NewEnergy disclosed net profit of A$10.05 million on A$8.41 million of total revenue for the year ended June 30, 2013, as compared with a net loss of A$6.19 million on A$38.20 million of total revenue during the prior fiscal year. BDO Audit (WA) Pty Ltd, in Perth, Western Australia, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2013. The independent auditors noted that the Company incurred operating cash outflows of $3.7 million during the year ended 30 June 2013 and, as of that date the consolidated entity's total liability exceeded its total assets by $12.5 million. These conditions, along with other matters, raise substantial doubt the Company's ability to continue as a going concern. MMODAL INC: Completes Financial Restructuring; Exits Chapter 11 --------------------------------------------------------------- M*Modal on July 31 disclosed that it has successfully completed its financial restructuring, reducing its debt by 55%, and has emerged from Chapter 11 Bankruptcy. "With renewed financial strength, M*Modal is firmly positioned to deliver the highest quality and most advanced clinical documentation to hospitals and physician practices," said Duncan James, M*Modal's Chief Executive Officer. "Our new capital structure will better support M*Modal's continued investment in delivering innovative transcription, coding and speech technology solutions, and will provide a stronger foundation to execute on our strategic plans. "Specifically, M*Modal is uniquely capable of delivering integrated clinical documentation solutions that accurately and efficiently document speech narratives of complex patient and physician interaction into electronic health records," Mr. James said. "Our solutions support the capture and care collaboration of over 60 million medical visits each year, enabling physicians to save time, hospitals to receive appropriate reimbursement, and patients to receive better care." As previously announced, M*Modal's Plan of Reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of New York by an order entered on July 21, 2014. M*Modal currently provides clinical documentation solutions to more than 3,800 hospitals and physician groups, including 65% of the hospitals on the recent 2014-15 U.S. News & World Report Best Hospitals "Honor Roll." "We thank our customers, partners and suppliers for their confidence and support throughout this process, and in particular we thank our employees for their focus and dedication to delivering continued quality services," Mr. James said. About M*Modal Headquartered in Franklin, Tennessee, M*Modal provides clinical documentation solutions for the U.S. healthcare industry. It has operations in six countries and employs more than 9,900 employees, most of whom are medical transcriptionists or medical editors. M*Modal, a medical-services company owned by J.P. Morgan Chase Co.'s private-equity arm, filed for Chapter 11 bankruptcy protection, following a decline in sales and mounting debt. MModal disclosed $627 million in total assets and $876 million in total liabilities as of Feb. 28, 2014. MModal Inc., disclosed, in its schedules, assets of $36,128,041 plus undetermined amount, and liabilities of $808,089,536 plus undetermined amount. Legend Parent Inc. and other M*Modal entities, including MModal Inc., sought bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-10701) on March 20, 2014. The Debtors have tapped Dechert LLP as attorneys, Alvarez & Marsal North America, LLC, as restructuring advisor, Lazard Freres & Co LLC as investment banker, Deloitte Tax LLP as tax advisor, and Prime Clerk LLC as claims and noticing agent, and administrative advisor. The Joint Plan of Reorganization dated April 25, 2014, provides that First Lien Claims will be allowed in the aggregate amount of $507,680,532. On the effective date, holders of First Lien Claim will also receive their pro rata share of (i) the New Term Loan, (ii) 93% of Reorganized Holdings Equity Interests, subject to dilution solely on account of the New Warrants and Management Stock Option Plan; and (iii) $8,197,801 in Cash. Holders of Allowed General Unsecured Claims will receive their pro rata share of (i) 7% of the Reorganized Holdings Equity Interests; (ii) the New A Warrants and New B Warrants; and (iii) $617,039 in Cash. A Steering Committee for Secured Lenders under the Prepetition Credit Agreement is represented by Richard Levy, Esq., at Latham & Watkins LLP. An Ad Hoc Committee of certain unaffiliated holders of (i) the Term B loan under the Prepetition Credit Agreement and (ii) Notes issued under the Indenture is represented by Michael Stamer, Esq., and James Savin, Esq., at Akin Gump Strauss Hauer & Feld LLP. The U.S. Trustee for Region 2 has appointed three members to the Official Committee of Unsecured Creditors. Kristopher M. Hansen, Esq., Frank A. Merola, Esq., and Matthew G. Garofalo, Esq., at Stroock & Stroock & Lavan LLP, in New York, serve as counsel to the Committee. Michael Diaz of FTI Consulting leads the team of financial advisors to the Creditors' Committee. MOONLIGHT APARTMENTS: Receiver Seeks Dismissal of SARE Case ----------------------------------------------------------- Carl R. Clark, Receiver of Moonlight Apartments, LLC, has requested that the Bankruptcy Court for the District of Kansas, Kansas City Division, dismiss the Debtor's chapter 11 case. Clark was appointed Receiver by the District Court of Johnson County, Kansas, in December 2012 to protect the interest of the Debtor's construction lender, First Capital Corp., which loaned the Debtor funds for the construction of an apartment complex. The Receiver has continued to control and operate the apartment property. The Debtor now wishes to dismiss its chapter 11 single asset real estate case which was filed on January 28, 2014. As the Debtor's real estate was sold at auction, and cash collateral was used to satisfy First Capital's lien, there are no remaining assets in the bankruptcy estate. Thus, the Receiver contends that there is "cause" for dismissing the case pursuant to Sec. 1112(b)(1) of the Bankruptcy Code. The Receiver further contends that continuing the bankruptcy case under either chapter 11 or chapter 7 would result in ongoing administrative fees and expenses which would deplete any funds available to unsecured creditors. Clark and Shane J. McCall, Esq. are attorneys with Lentz, Clark, Deines PA of Overland Park, KS. About Moonlight Apartments, LLC Moonlight Apartments, LLC, owner of multi-family residential real property located in Gardner, Kansas, filed a Chapter 11 bankruptcy petition (Bankr. D. Kansas Case No. 14-20172) in Kansas City on Jan. 28, 2014. The Overland Park, Kansas-based company disclosed $28,631,756 in assets and $26,125,713 in liabilities as of the Chapter 11 filing. The Debtor is represented by attorneys at Jochens Law Office, Inc., in Kansas City. According to the docket, the Debtor's Chapter 11 plan and disclosure statement were due May 28, 2014. No committee of creditors or equity security holders has been appointed in this case. Carl R. Clark is the receiver of Moonlight Apartments. MUSCLEPHARM CORP: Inks Employment Agreements with CFO and COO ------------------------------------------------------------- MusclePharm Corporation, on July 28, 2014, entered into employment agreements with certain of its executive officers including Donald Prosser and James Greenwell, as well as entered into amendments to the employment contracts of certain of its executive officers including Brad Pyatt and Richard Estalella. Pursuant to Mr. Prosser's employment contract, Mr. Prosser will serve as the Company's chief financial officer until Dec. 31, 2015, during which time Mr. Prosser will report to the Company's President. In consideration of Mr. Prosser's performance of his duties during the Prosser Term, Prosser is to receive an initial base salary of $275,000 per year, with any increases to such Prosser Base Salary during the Prosser Term to be determined at the discretion of the Company and the Compensation Committee of the Company's Board of Directors. Mr. Prosser is also eligible to receive an annual performance bonus based on certain goals and performance levels established by the Company and the Committee, in an amount not to exceed $225,000 per year. Mr. Prosser is also entitled to receive, at the discretion and review of the Committee, shares of the Company's common stock in the amounts and pursuant to the terms as established by the Committee. Pursuant to Mr. Greenwell's employment contract, Mr. Greenwell will serve as the Company's chief operating officer until Dec. 31, 2016, during which time Greenwell will report to the Company's president. In consideration of Mr. Greenwell's performance of his duties during the Greenwell Term, Greenwell is to receive an initial base salary of $275,000 per year, with any increases to such Greenwell Base Salary during the Greenwell Term to be determined at the discretion of the Company and the Committee. Greenwell is also eligible to receive an annual performance bonus based on certain goals and performance levels established by the Company and the Committee, in an amount not to exceed $300,000 per year. Mr. Greenwell is also entitled to receive, at the discretion and review of the Committee, shares of the Company's common stock in the amounts and pursuant to the terms as established by the Committee. Mr. Pyatt's employment contract was amended to extend the term of such agreement to Dec. 31, 2018. Mr. Estalella's employment contract was amended as follows: * Mr. Estalella's title and responsibilities were amended to reflect his current role as the Company's president; * The term of that contract was extended to Dec. 31, 2018; * Base Salary was increased to $300,000 per year and bonus eligibility was increased to $325,000 per year; and * Certain severance and termination provisions were amended. About MusclePharm Headquartered in Denver, Colorado, MusclePharm Corporation (OTC BB: MSLP) -- http://www.muslepharm.com/-- is a healthy life- style company that develops and manufactures a full line of National Science Foundation approved nutritional supplements that are 100 percent free of banned substances. MusclePharm is sold in over 120 countries and available in over 5,000 U.S. retail outlets, including GNC and Vitamin Shoppe. MusclePharm products are also sold in over 100 online stores, including bodybuilding.com, Amazon.com and Vitacost.com. MusclePharm reported a net loss after taxes of $17.71 million in 2013, as compared with a net loss after taxes of $18.95 million in 2012. The Company's balance sheet at March 31, 2014, showed $65.61 million in total assets, $30.81 million in total liabilities and $34.79 million in total stockholders' equity. NASSAU TOWER: TD Bank Blocks Confirmation of 2nd Amended Plan ------------------------------------------------------------- TD Bank, N.A., filed with the U.S. Bankruptcy Court for the District of New Jersey on July 23, 2014, an objection to Nassau Tower Realty, LLC's Second Modified Plan of Reorganization Plan. According to TD Bank, the Debtor has the burden of proof on several issues before the Court, including (a) feasibility of the Second Amended Plan, and (b) whether TD Bank is receiving the indubitable equivalent of its secured claim in the Second Amended Plan, and in each instance, the Debtor cannot meet its burden of proof. TD Bank believes that the Plan isn't feasible since the Debtor has failed to obtain the necessary commitment letter for the financing proposed in the Plan. The Second Modified Disclosure Statement -- a copy of which is available at http://bankrupt.com/misc/NASSAUTOWER_157_2ds.pdf-- alleges the Debtor is close to receiving a commitment for either $3.35 million or $6.5 million. However, no commitment letter has been obtained by the Debtor, TD Bank says. A copy of the objection is available for free at: http://bankrupt.com/misc/NASSAUTOWER_planobj.pdf On March 3, 2014, the Debtor filed a first modified disclosure statement and first modified plan that classifies the Santander secured debt separately in class two and provides a treatment characterized as impaired. On April 22, 2014, the Court approved the Disclosure Statement and set the plan confirmation hearing for May 29, 2014, at 10:00 a.m. The Court entered on April 30, 2014, an order approving a stipulation and consent order between the Debtor and Santandar resolving the bank's Nov. 26, 2013 objection to the Debtor's Sept. 27, 2013 Disclosure Statement and Plan that proposed to: (i) classify the Santander secured debt separately in class two; (ii) provide a treatment characterized as unimpaired; (iii) permit Santander to retain its mortgage liens on the Santander collateral and to otherwise be unaffected by the Plan. A copy of the order is available for free at: http://bankrupt.com/misc/NASSAUTOWER_163_dsord.pdf Pursuant to the Stipulation, the Debtor agreed to sell or refinance 1 Robbins Parkway within 90 days of the effective date. The Second Amended Plan does not include a time frame by which the Robbins Parkway property would be sold, and as a result, it is unclear whether the Robbins Parkway property must be sold or refinanced no later than 14 days after the confirmation order or 90 days after the effective date, the U.S. Trustee says. Pursuant to the Stipulation, the Debtor would file a proposed second modified plan that substantially provides the treatment for Santander with respect to its collateral. On April 21, 2014, the Debtor filed the Second Modified Plan, which the U.S. Trustee objected to on May 22, 2014, because, among other things, (i) the Debtor has not filed its monthly operating report for the month of April 2014, which report was due on or before May 20, 2014; and (ii) the Debtor has failed to pay the correct quarterly fees for the third quarter of 2013, the fourth quarter of 2013 and the first quarter of 2014. The U.S. Trustee says in its May 22 court filing that without the most recent monthly operating report, it is difficult to understand the feasibility of the Plan, and if the Debtor is unable to escrow the funds, then the Second Amended Plan cannot be confirmed. A separate motion to compel the payment of quarterly fees will be filed, which will allow the Second Amended Plan to be confirmed subject to the Debtor placing the disputed amount of quarterly fees in an attorney trust account held by the Debtor's attorney. According to the U.S. Trustee, it appears that the Debtor, through its Second Amended Plan, proposes to pay (i) administrative claims on the effective date unless a claimant agreed to be paid later, (ii) the secured claim of Santandar, through the sale of properties or a negotiated credit, (iii) the secured claims of TD Bank through negotiated credits of properties owned by the Debtor and properties owned by NTH and a loan, (iv) other secured claims in accordance with their notes or loan agreements and (v) unsecured creditors a pro rata distribution from the Intex claim and the property sold at 1 and 13 Robbins Place after payment to administrative claims. The Debtor provides that the Plan will be effectuated by the delivery of deeds to TD Bank for properties to be turned over for fair value credits. In addition, on or before the effective date, the Debtor will sell the properties to be sold (1 and 13 Robbins Parkway) and complete the refinance transactions. The Debtor defines the effective date in the plan as the day on which the confirmation order becomes a final order. As a result, the sale and refinance must be completed no later than 14 days after the confirmation order is entered by the Court. The TD Bank is represented by: Timothy P. Duggan, Esq. Stark & Stark, P.C. 993 Lenox Drive, Building 2 P.O. Box 5315 Princeton, New Jersey 08543-5315 Tel: (609) 896-9060 Fax: (609) 895-7395 TD Bank Wants Stay Lifted On April 15, 2014, TD Bank asked the Court for an order lifting the automatic stay to permit the bank to proceed to conclusion with its foreclosure proceedings with respect to real property commonly known as 71-75 North Main Street, Lambertville, New Jersey; 1015 Route 9 Berkeley Township, New Jersey; 3245 North Route 35, Toms River, New Jersey; 1513 Richmond Avenue, Point Pleasant, New Jersey; 22 South Sixth Street, Stroudsburg Borough, Pennsylvania; and 1377 Woodside Avenue, Lower Makefield Township, Pennsylvania. The Debtor objected to TD Bank's motion on May 12, 2014, saying that TD Bank is not entitled to stay relief because the Debtor has a reasonable possibility of confirming a plan in a reasonable period of time. The Debtor filed for bankruptcy relief under Chapter 11 and proposed a plan with regard to the properties encumbered by the TD Bank's notes. About Nassau Tower Princeton, N.J.-based Nassau Tower Realty, LLC, filed for Chapter 11 relief on (Bankr. D. N.J. Case No. 13-24984) on July 9, 2013. The Hon. Judge Michael B. Kaplan presides over the case. Paul Maselli, Esq., and Kimberly Pelkey Sdeo, Esq., at Maselli Warren, P.C., represent the Debtor as counsel. The Debtor estimated assets of $10 million to $50 million and debts of $10 million to $50 million. The Debtor is the owner of 17 parcels of real estate. It owns 13 parcels in New Jersey, 3 parcels in Pennsylvania, one parcel in Maine. Most of the properties generate income in the form of rents paid by tenants. The petition was signed by Louis Mercatanti, officer of Nassau Holdings, Inc. The Debtor filed a Plan of Reorganization dated Sept. 27, 2013, that allows the Debtor to reorganize by continuing to operate, to liquidate by selling assets of the estate, or a combination of both. * * * On April 14, 2014, the Debtor informed the Court that it has transferred to 704 Howe Street, Bay Head, NJ 08742, from 619 Alexander Road, Princeton, NJ 08540. NATIONAL ED: Fitch Cuts & Withdraws Sub. Notes Rating to 'B-sf' --------------------------------------------------------------- Fitch Ratings downgrades the subordinate note from 'BBsf' to 'B- sf' issued by National Ed Financing LLC and subsequently withdraws the rating for coverage reasons. National Ed Financing has chosen to stop participating in the rating process. Accordingly, Fitch will no longer provide ratings or analytical coverage for National Ed Financing. KEY RATING DRIVERS Collateral Quality: The loans under the facility are comprised of 88% of Federal Family Education Loan Program (FFELP) loans and approximately 12% private student loans. The FFELP collateral benefits from the guarantees provided by the transaction's eligible guarantors and at least 97% reinsurance of principal and accrued interest provided by the U.S. Department of Education (ED) for the FFELP loans, which make up the majority of the portfolio. The projected lifetime defaults for the private student loans are expected to range between 30%-40%. A recovery rate of 14% was applied. Credit Enhancement: The rating on the subordinate note is downgraded due to the insufficient credit enhancements to cover the applicable risk factor stresses. In addition, the trust has not been able to build up parity since the deal's inception. As of May 2014, total parity is 98.00%. The parity stagnation is due to the high expense structure and rich borrower benefits, which has contributed to a lower interest margin. The trust is a full turbo structure; therefore no cash is released until the notes are paid in full. Liquidity Support: Liquidity support is provided by a reserve account. The reserve is sized equal to 0.50% of the total note balance. Servicing Capabilities: National Education is the Master Servicer and will be responsible for servicing approximately 90% of the FFELP collateral pool and 100% of the private student loan collateral pool. The remaining 10% of FFELP collateral is serviced by ACS, COSTEP, ESA, Great Lakes (GLHEC), Nelnet, AES/PHEAA, Ed Financial and Navient Solutions. Fitch has reviewed the servicing operations of the above entities and believes them to be acceptable servicers of FFELP and private student loans. RATING SENSITIVITIES Since FFELP student loan ABS rely on the U.S. government to reimburse defaults, 'AAAsf' FFELP ABS ratings will likely move in tandem with the 'AAA' U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch's published stresses could result in future downgrades. Likewise, a buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades. As Fitch's base case private loans default proxy is derived primarily from historical collateral performance, actual performance may differ from the expected performance, resulting in higher loss levels than the base case. This will result in a decline in credit enhancement and remaining loss coverage levels available to the notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage. Fitch has taken the following rating action: National Ed Financing LLC - Series 2008-A -- Class B downgraded to 'B-sf' from 'BBsf'; subsequently withdrawn NATIVE WHOLESALE: Amended Plan Okayed, Dismissal Motion Withdrawn ----------------------------------------------------------------- The Hon. John Bucki of the U.S. Bankruptcy Court for the Western District of New York entered on July 29, 2014, an order confirming the Amended Joint Consensual Plan of reorganization of Native Wholesale Supply Co. As reported by the Troubled Company Reporter on July 18, 2014, the Court approved the Joint Consensual Disclosure Statement, as amended, for the Plan. A full-text copy of the Amended Disclosure dated June 13, 2014, is available for free at: http://bankrupt.com/misc/NATIVEWHOLESALE_AmdDS0613.PDF Janet G. Burhyte, Esq., at GrossShuman Brizdle & Gilfillan, P.C., the attorney for the Debtor, sent a letter to the Clerk of Court informing her on July 29, 2014, that the Debtor has withdrawn its Oct. 21, 2013 motion seeking dismissal of its bankruptcy case. About Native Wholesale Supply Company Native Wholesale Supply Company is engaged in the business of importing cigarettes and other tobacco products from Canada and selling them to third parties within the United States. It purchases the products from Grand River Enterprises Six Nations, Ltd., a Canadian corporation and the Debtor's only secured creditor. Native is an entity organized under the Sac and Fox Nation and has its principal place of business at 10955 Logan Road in Perrysburg, New York. Native filed for Chapter 11 bankruptcy (Bankr. W.D.N.Y. Case No. 11-14009) on Nov. 21, 2011. The Chapter 11 filing was triggered to resolve an ongoing dispute with the United States government regarding up to $43 million in assessments made by the government against the Debtor pursuant to the Fair and Equitable Tobacco Reform Act of 2004 and the Tobacco Transition Payment Program and to restructure the terms of payment of any obligation determined to be owing by the Debtor to the U.S. under the Disputed Assessment. The issues pertaining to the Disputed Assessment resulted in two lawsuits, subsequently consolidated, now pending in the Federal District Court. Robert J. Feldman, Esq., and Janet G. Burhyte, Esq., at Gross, Shuman, Brizdle & Gilfillan, P.C., in Buffalo, N.Y., represent the Debtor as counsel. The Company disclosed $30,022,315 in assets and $70,590,564 in liabilities as of the Chapter 11 filing. The States of California, New Mexico, Oklahoma and Idaho have appeared in the case and are represented by Garry M. Graber, Esq., and Craig T. Lutterbein, Esq., at Hodgson Russ LLP, in Buffalo, New York, and Karen Cordry, Esq., National Association of Attorneys General, in Washington, D.C. According to a Consensual Disclosure Statement for Joint Consensual Plan of Reorganization of Native Wholesale Supply Company, and the States dated March 6, 2014, the Debtor established a Plan Funding Account at M&T and deposited $5.5 million on Feb. 4, 2014, and an additional $500,000 was deposited on Feb. 14, 2014. An additional $500,000 will be deposited in the Plan Funding Account on each succeeding 15th day of each month (or the first business day after the 15th) beginning in March 2014 until the Plan is confirmed. No trustee, examiner or creditors' committee has been appointed in the case. NELSON EDUCATION: S&P Withdraws 'D' Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'D' long-term corporate credit rating on Toronto-based Nelson Education Ltd. At the same time, Standard & Poor's withdrew its issue-level and recovery ratings on the company's debt. S&P withdrew the ratings at the issuer's request. NEOMEDIA TECHNOLOGIES: To Restate 2013 10-K and Q1 2014 10-Q ------------------------------------------------------------ NeoMedia Technologies, Inc., had received a correspondence from the U.S. Securities and Exchange Commission requesting that: (i) the Company restate certain of its financial statements by filing amendments to the reports containing those financials; and (ii) the Company file a current report on Form 8-K to report non-reliance on those financials. Accordingly, the Company filed a Current Report on Form 8-K to report that the Company's previously issued audited financial statements as of and for the year ended Dec. 31, 2013, as presented in the Company's Annual Report on Form 10-K for that period, as well as the financial statements issued in the Company's quarterly report on Form 10-Q for the period ending March 31, 2014, should no longer be relied upon. In its correspondence, the SEC asserted that certain modifications in the Company's valuation methodology, deemed as accounting estimates by the Company, contained errors with respect to the valuation of convertible debentures issued by the Company, in that such methodology did not capture the debentures' potentially dilutive effect upon their conversion into common stock. The operational performance of the Company will remain unchanged. The Company intends to file an amended Form 10-K and an amended Form 10-Q that will contain restated Financial Statements revised pursuant to the SEC's comments. About NeoMedia Technologies Atlanta, Ga.-based NeoMedia Technologies provides mobile barcode scanning solutions. The Company's technology allows mobile devices with cameras to read 1D and 2D barcodes and provide "one click" access to mobile content. NeoMedia reported a net loss of $214.11 million in 2013, as compared with a net loss of $19.38 million in 2012. Kingery & Crouse, P.A., in Tampa, FL, 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, has significant working capital and shareholder deficits and may have ongoing requirements for additional capital investment. These factors raise substantial doubt about the Company's ability to continue as a going concern. NEW ENGLAND COMPOUNDING: Judge Approves Settlements --------------------------------------------------- Jacqueline Palank, writing for Daily Bankruptcy Review, reported that victims of a deadly meningitis outbreak will share as much as $100 million under settlements that won court approval in the bankruptcy case of the Massachusetts pharmacy tied to the outbreak. As previously reported by The Troubled Company Reporter, citing Bill Rochelle, the bankruptcy columnist for Bloomberg News, the New England Compounding Pharmacy Inc. trustee fielded a raft of objections when he proposed a settlement under which the company's insurance providers would contribute about $100 million toward compensation for people who contracted fungal meningitis after being injected with NECP's tainted products. Lawyers for about 170 plaintiffs in Virginia and Tennessee objected because they say the NECP trustee didn't provide factual or legal explanations of why an insurance company could successfully deny coverage. Another group of 95 plaintiffs said they don't want insurance proceeds from policies covering some plaintiffs to be thrown into a pot for all plaintiffs, the report related. About New England Compounding Pharmacy New England Compounding Pharmacy Inc., filed a Chapter 11 petition (Bankr. D. Mass. Case No. 12-19882) in Boston on Dec. 21, 2012, after a meningitis outbreak linked to an injectable steroid, methylprednisolone acetate ("MPA"), manufactured by NECC, killed 39 people and sickened 656 in 19 states, though no illnesses have been reported in Massachusetts. The Debtor owns and operates the New England Compounding Center is located in Framingham, Mass. In October 2012, the company recalled all its products, not just those associated with the outbreak. Paul D. Moore, Esq., at Duane Morris LLP, in Boston, has been appointed as Chapter 11 Trustee of NECC. He is represented by: Jeffrey D. Sternklar, Esq. DUANE MORRIS LLP Suite 2400 100 High Street Boston, MA 02110-1724 Tel: 857-488-4216 Fax: 857-401-3034 An Official Committee of Unsecured Creditors appointed in the case has been represented by: BROWN RUDNICK LLP William R. Baldiga, Esq. Rebecca L. Fordon, Esq. Jessica L. Conte, Esq. One Financial Center Boston, MA 02111 Tel: (617) 856-8200 - and - David J. Molton, Esq. Seven Times Square New York, NY 10036 Tel: (212) 209-4800 NEW WORLD RESOURCES: Files in Manhattan for UK Restructuring ------------------------------------------------------------ New World Resources N.V., the financing vehicle for Dutch company CERCL Mining B.V., sought bankruptcy protection under Chapter 15 in the U.S. to seek recognition of its voluntary restructuring proceedings in the United Kingdom. Boudewijn Wentink, the foreign representative, says the Debtor's ability to repay its debts is entirely dependent on the cash generated from its operating subsidiaries. As a result of depressed global coal prices, these companies have not been able to generate sufficient operating cash flow to satisfy the corporate group's financial obligations (obligations primarily incurred by the Debtor) since the second half of 2012. Throughout the last year and a half, the Debtor has implemented numerous operational cost savings measures and has been in negotiations with its creditors (including negotiations with a large ad hoc committee of noteholders holding both secured and unsecured notes). These negotiations recently resulted in an agreed framework for a financial restructuring that, if approved by one or both classes of noteholders in accordance with the requisite consent thresholds and the Chancery Division (Companies Court) of the High Court of Justice of England and Wales, will be implemented through a scheme of arrangement in the United Kingdom. Only two classes of the Debtor's creditors -- its secured noteholders and its unsecured noteholders -- will have their rights affected by, and will vote on, the Scheme. Under applicable English law, at least 75% in amount and a majority in number of the creditors in a class of claims (who are present and voting in person or by proxy) at the creditors' meeting, must vote to approve the Scheme in order for it to become binding on all creditors in such class. To date, holders of approximately 85% of the outstanding secured notes and approximately 65% of the outstanding unsecured notes have already entered into a lockup and restructuring agreement with the Debtor pursuant to which they have agreed to vote in favor of the Scheme. The Debtor thus expects the Scheme to be approved by both classes of notes. The Debtor is seeking to stop creditor actions in the U.S. The Debtor has assets in the form of funds held in an account at Citibank N.A. in New York, New York, and the indentures governing the notes that will be adjusted pursuant to the Scheme are governed by New York law. About New World Resources New World Resources N.V. is owned and controlled by New World Resources Plc, an English public limited company domiciled in the Netherlands that is admitted for trading on the London Stock Exchange, where it maintains a Premium Listing, along with the Warsaw Stock Exchange and the Prague Stock Exchange. The ultimate parent and indirect majority owner of NWR is CERCL Mining B.V., a privately-held Dutch company, which owns a controlling majority of the shares of NWR Plc. NWR's primary role in its corporate group has been to issue debt (primarily in the form of secured and unsecured notes) and to loan the corresponding proceeds to its wholly-owned operating subsidiaries. These operating subsidiaries conduct coal mining and exploration operations in the Czech Republic and Poland. The operating subsidiary conducting mining operations in the Czech Republic is critical to the local economy in that country. Collectively, these operating subsidiaries employee over 11,500 workers (and utilize an additional 3,000 contractors), and many major steel groups -- including some operating in the U.S. -- are reliant on their coal. As of July 15, 2014, NWR had outstanding gross external debt of approximately EUR825 million (exclusive of amounts it owes under certain intercompany obligations). Of this debt, EUR500 million in principal amount plus accrued interest is owed to the beneficial holders of the 7.875% Senior Secured Notes due May 1, 2018. NWR also owes EUR275 million in principal amount plus accrued interest to the beneficial holders of its 7.875% Senior Unsecured Notes due January 15, 2021. NWR applied to the Chancery Division (Companies Court) of the High Court of Justice of England and Wales, on July 28, 2014, for an order directing it to convene separate meetings for two classes of creditors only, namely, the existing senior secured noteholders on the one hand, and the existing senior unsecured noteholders. NWR filed a Chapter 15 bankruptcy petition (Bankr. S.D.N.Y. Case No. 14-12226) in Manhattan, New York on July 30, 2014, to seek recognition of the UK proceeding. Neither the Debtor's parent nor any of its operating subsidiaries have commenced insolvency proceedings in the UK Court or any other court within any jurisdiction. The U.S. case is assigned to Judge Stuart M. Bernstein. NEWPAGE CORP: S&P Retains 'B+' CCR on CreditWatch Negative ---------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on Memphis, Tenn.-based paper producer NewPage Corp., including the 'B+' corporate credit rating, remain on CreditWatch with negative implications. S&P placed the ratings on CreditWatch on Jan. 8, 2014, after the company announced it had reached an agreement to be acquired by competitor Verso Paper Holdings LLC. NewPage had agreed to be acquired by lower-rated competitor Verso for $1.4 billion. The transaction, which S&P expects to close in the second half of 2014, is subject to certain conditions including a Department of Justice review and the successful consummation of exchange offers for Verso's fixed-rate second-lien notes and subordinated notes. It is S&P's understanding that Verso's exchange offers expired and that the company satisfied the minimum participation conditions. Both Memphis, Tenn.-based NewPage and Miamisburg, Ohio-based Verso are large coated paper manufacturers. Combined, S&P expects the companies will have about $4.5 billion of annual sales. A substantial portion of these sales are to catalog and magazine end users that S&P believes is susceptible to substitution risk due to changing consumer preferences for electronic content. "We expect to resolve the CreditWatch placement on NewPage when Verso completes its acquisition, which we expect to occur later in 2014. At that time, it is likely we would lower our rating on NewPage by at least one notch," said Standard & Poor's credit analyst James Fielding. NN INC: S&P Assigns 'B+' CCR & Rates $350MM Secured Loan 'B+' ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Johnson City, Tenn.-based high precision metal component manufacturer NN Inc. At the same time, S&P assigned its 'B+' issue rating and '3' recovery rating to the company's proposed $350 million senior secured term loan. The '3' recovery rating indicates S&P's expectation for meaningful recovery (50%-70%) in a payment default scenario. The company will use the debt proceeds to partly finance the acquisition of Autocam Corp. (not rated). The transaction also includes a new $100 million asset-based revolver (not rated) that would be undrawn at close. "Our 'B+' corporate credit rating on NN reflects the company's participation in the volatile and competitive global auto supplier industry," said Standard & Poor's credit analyst Robyn Shapiro. "We expect debt to EBITDA of about 4x in by year-end 2014." S&P's rating is also based on NN's relatively small scale and narrow product scope as a high precision metal component manufacturer in the highly cyclical global auto industry. The industry is characterized by high fixed costs, capital intensity, and continuing pricing pressure from customers and competitors. S&P believes that NN's revenue growth will relate to the pace of auto production globally, which we believe will be positive. Pro forma for the acquisition of Autocam, approximately 70% of NN's sales will be to the light vehicle end market. The stable outlook reflects S&P's expectations that global light- vehicle demand will allow revenues to increase and NN's EBITDA margins will improve as a result of the proposed Autocam acquisition. S&P believes that these factors will keep leverage below 5x and generate free cash flow to debt of at least 5%. S&P could raise the rating during the next 12 months if it expects free cash flow to debt to improve above 10% on a sustained basis, along with adjusted debt leverage below 4x. S&P could lower the rating during the next 12 months if light vehicle demand weakens unexpectedly in North America and Europe, and if it appears that NN's debt to EBITDA would rise above 5x on a sustained basis or that its FOCF to debt will fall to less than 5%. Alternatively, S&P could lower the rating if NN finances a major acquisition or completes a distribution to shareholders that increases leverage above 5x without prospects for rapidly reducing debt. OHANA GROUP: Bush Strout & Kornfeld Withdraws as Counsel -------------------------------------------------------- The Bankruptcy Court, having reviewed the files and records and finding that good cause exists, grants Bush Strout & Kornfeld LLP leave to withdraw as counsel for Ohana Group, LLC. James L. Day, Esq., at Bush Strout & Kornfeld LLP, in Seattle, Washington, relates that counsel's withdrawal is effective immediately. Withdrawing counsel's contact details are: James L. Day, Esq. Bridget G. Morgan, Esq. BUSH STROUT & KORNFELD LLP 5000 Two Union Square 601 Union Street Seattle, WA 98101-2373 Telephone (206) 292-2110 Facsimile (206) 292-2104 About Ohana Group LLC Ohana Group LLC, in Seattle, Washington, filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 12-21904) on Nov. 30, 2012. Judge Marc Barreca oversees the case. James L. Day, Esq., at Bush Strout & Kornfeld LLP, served as bankruptcy counsel. In its petition, the Debtor scheduled $16,000,000 in assets and $11,696,131 in liabilities. OHANA GROUP: Prior Counsel Asks Court to Convert Case to Chapter 7 ------------------------------------------------------------------ Bush Strout & Kornfeld LLP, an unsecured creditor holding an allowed but unpaid administrative expense claim, asks the Bankruptcy Court to convert the Chapter 11 case of Ohana Group, LLC, to a case under Chapter 7 of the Bankruptcy Code. Bush Strout & Kornfeld is prior bankruptcy counsel to Ohana. On December 20, 2013, counsel successfully obtained confirmation of a consensual plan of reorganization for Ohana. The confirmed plan required that all administrative expenses claims be paid on the later of the effective date of the plan or the date the claim is allowed. As of confirmation, counsel held an allowed but unpaid claim for $127,349. Since that time, the Court has approved counsel's application resulting in a total amount owed of $99,852. James L. Day, Esq., at Bush Strout & Kornfeld LLP, in Seattle, Washington, relates that despite numerous demands and months of effort seeking Ohana's cooperation in paying the outstanding balance, Ohana has continually refused to do so. In addition, Peter Shorett and Insignia Kidder Mathews hold an allowed administrative expense claim against Ohana for $6,800 from Mr. Shorett's work as Ohana's valuation expert. Mr. Day asserts that despite numerous requests that this amount be paid, Ohana has failed and refused to do so. Bush Strout & Kornfeld also has offered to pay Mr. Shorett from funds it holds as a retainer, but Ohana has refused to authorize counsel to do so. The confirmed plan also contains detailed provisions for the treatment of the claim of Ohana's secured lender. The lender alleges numerous defaults under the confirmed plan. These defaults have apparently risen to such a level that the lender has commenced a non-judicial foreclosure of its deed of trust against Ohana's sole asset, its office building in Fremont. Mr. Day notes that if that sale goes forward and the property is sold, Ohana will be left with no assets and no cash flow and unsecured creditors such as Bush Strout & Kornfeld and Mr. Shorett will have no source for recovery on their claims. According to Mr. Day, Ohana is in material default under its plan, both as to its secured lender and as to holders of allowed administrative expense claims. The effective date of the plan was January 7, 2014, and yet five and a half months later no payment on any allowed administrative expense claims has been made. Mr. Day points out that it appears that conversion of the case to Chapter 7 would bring with it a new automatic stay, which would remove the near-term risk of loss of the property due to the trustee's sale. There might also be a return on equity as well. In addition, counsel negotiated a provision in the confirmed plan by which the property can be sold any time until January 1, 2015, without payment of the significant prepayment penalty that would otherwise be payable. This is a significant benefit to all parties that a trustee could obtain for creditors, says Mr. Day. Wells Fargo Reserves Rights Wells Fargo Bank, N.A., as trustee for the registered holders of Credit Suisse First Boston Mortgage Securities Corp., commercial mortgage pass-through certificates, series 2007-C5, reserves its rights to oppose or comment on the conversion request of Bush Strout & Kornfeld. Alan M. Feld, Esq., at Sheppard, Mullin, Richter & Hampton LLP, in Los Angeles, California, relates that in light of all the pending matters before the Court including Wells Fargo's request for appointment of a custodial receiver and Ohana's request for a preliminary injunction to enjoin the pending non-judicial foreclosure sale, it is premature for the noteholder to take substantive position on the conversion request. Wells Fargo is represented by: Alan M. Feld, Esq. Theodore A. Cohen, Esq. SHEPPARD, MULLIN, RICHTER & HAMPTON LLP 333 South Hope Street, 43rd Floor Los Angeles, CA 90071 Telephone: 213-620-1780 Facsimile: 213-620-1398 About Ohana Group LLC Ohana Group LLC, in Seattle, Washington, filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 12-21904) on Nov. 30, 2012. Judge Marc Barreca oversees the case. James L. Day, Esq., at Bush Strout & Kornfeld LLP, served as bankruptcy counsel. In its petition, the Debtor scheduled $16,000,000 in assets and $11,696,131 in liabilities. PRODUCTION RESOURCE: S&P Rates New $150 Million Term Loan 'CCC+' ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'CCC+' corporate credit rating on Armonk, N.Y.-based live entertainment equipment and service provider Production Resource Group Inc. (PRG). The outlook is negative. At the same time, S&P assigned the company's asset-based revolver a 'B' issue-level rating, with a recovery rating of '1', indicating S&P's expectation for very high (90% to 100%) recovery in the event of a payment default. In addition, S&P assigned the new $150 million term loan an issue- level rating of 'CCC+', with a recovery rating of '4', indicating its expectation for average (30% to 50%) recovery in the event of a payment default. PRG has used the proceeds from the term loan issuance to pay down $143 million of the current drawings on the $250 million revolver. The transaction improves liquidity, which enables the company to make strategic asset purchases to bolster operating profitability. However, S&P maintains its view that the company is currently vulnerable and depends on favorable business, financial, and economic conditions to meet its financial commitments. "While we do not expect PRG to face a credit or payment crisis within 12 months, we view the capital structure as unsustainable in the long term, given the current insufficiency of cash flow from operations to fund outlays on capital expenditures," said Standard & Poor's credit analyst Peter Bourdon. "We expect that this will result in negative discretionary cash flow in 2014, as it did in 2012 and 2013. The potential for acquisitions is an additional factor that could drain liquidity in 2014." PRG operates in a capital-intensive industry (production of concert tours and other large-scale staged events) that is highly fragmented and competes based on price. The company is also subject to the unpredictable nature of the concert tour business, economic cyclicality, and short average runs of musicals and plays. These factors support Standard & Poor's view of PRG's business risk profile as "vulnerable." First-half revenue increased marginally year over year as a result of increased U.S. theater, concert touring, special events, and trade show business, and improved performance in Europe. These improvements largely offset decreased revenue in the film and television market in the Americas and shortfalls in the company's Asian and Australian operations. S&P views the company's management and governance as "weak" because of the company's inability to reverse negative discretionary cash flow over the last two years, which is mostly due to the high capital expenditure nature of the business. As of Dec. 31, 2013, the company's adjusted leverage was roughly 8x. In order to maintain the business and drive growth, the company invests about 8% to 10% of annual revenue in capital expenditures and pursues smaller acquisitions. Given the negative discretionary cash flow because of high capital expenditures and potential for additional cash outflows for acquisitions, S&P views the capital structure as unsustainable over the long term, and view PRG's financial risk profile as "highly leveraged." RAAM GLOBAL: S&P Lowers Corp. Credit Rating to 'CCC+' ----------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit and senior secured ratings on exploration and production company RAAM Global Energy Co. to 'CCC+' from 'B-'. The outlook is negative. "The downgrade reflects our assessment that Lexington, Ky.-based RAAM Global Energy Co. could have difficulty refinancing its $250 million senior secured notes due October 2015 due to weak operating performance, largely due to unexpected production declines on its Yegua wells that have resulted in weakening liquidity and limited near-term growth potential. These factors result in a liquidity assessment of "weak." Ratings also include our assessment of RAAM's business risk profile as "vulnerable" and financial risk profile as "highly leveraged"," S&P noted. The negative outlook reflects the potential to lower ratings should RAAM have difficulty addressing refinancing risk as it pertains to its $250 million senior secured notes due Oct. 1, 2015. "RAAM's weak operating performance year to date in 2014 could make refinancing its bonds difficult unless it can stabilize its operating performance and begin to restore production levels in the near term. RAAM's ability to do this could be challenged by its limited liquidity available for growth and need to form joint ventures or other means to help fund spending," said Standard & Poor's credit analyst Paul Harvey. "Furthermore, a refinancing will depend on capital markets remaining robust, which could be susceptible to global disturbances such as currently with Russia and the Middle East, among other political and economic factors." S&P could lower ratings if RAAM does not have a plan to refinance the notes by the beginning of 2015, at which time the notes will be current and refinancing concerns mount. S&P could stabilize ratings if RAAM is able to both refinance its notes and establish a credit facility to support ongoing liquidity. In addition, S&P would need to expect sustained stable to improving operational performance. REAL ESTATE ASSOCIATES: Delists Limited Partnership Units --------------------------------------------------------- Real Estate Associates Limited VII filed a Form 15 with the U.S. Securities and Exchange Commission to terminate the registration of its limited partnership units. As of July 29, there was no holder of the security. As a result of the Form 15 filing, the Partnership is not anymore required to file periodic reports with the SEC. About Real Estate Associates Real Estate Associates Limited VII is a limited partnership which was formed under the laws of the State of California on May 24, 1983. On Feb. 1, 1984, the Partnership offered 2,600 units consisting of 5,200 limited partnership interests and warrants to purchase a maximum of 10,400 additional limited partnership interests through a public offering managed by E.F. Hutton Inc. The Partnership received $39,000,000 in subscriptions for units of limited partnership interests (at $5,000 per unit) during the period from March 7, 1984 to June 11, 1985. The general partners of the Partnership are National Partnership Investments Corp., a California Corporation, and National Partnership Investments Associates II. The business of the Partnership is conducted primarily by NAPICO, a subsidiary of Apartment Investment and Management Company, a publicly traded real estate investment trust. As of Sept. 30, 2012, and Dec. 31, 2011, the Partnership holds limited partnership interests in 1 and 11 Local Limited Partnerships, respectively, and a general partner interest in REA IV which, in turn, holds limited partnership interests in 3 and 8 additional Local Limited Partnerships, respectively; therefore, the Partnership holds interests, either directly or indirectly through REA IV, in 4 and 19 Local Limited Partnerships, respectively. The other general partner of REA IV is NAPICO. The Local Limited Partnerships own residential low income rental projects consisting of 403 and 1,237 apartment units at Sept. 30, 2012, and Dec. 31, 2011, respectively. The mortgage loans of these projects are payable to or insured by various governmental agencies. The Partnership disclosed net income of $13.01 million on $0 of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $861,000 on $0 of revenue during the prior year. The Company's balance sheet at Sept. 30, 2013, showed $886,000 in total assets, $18,000 in total liabilities and $868,000 in total partners' capital. Ernst & Young LLP, in Greenville, South Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Partnership continues to generate recurring operating losses. In addition, notes payable and related accrued interest totalling $8.09 million are in default due to non-payment. These conditions raise substantial doubt about the Partnership's ability to continue as a going concern. RIVER CITY RENAISSANCE: Files for Ch. 11 in Richmond, Virginia -------------------------------------------------------------- River City Renaissance, LC, and River City Renaissance III, LC, sought Chapter 11 protection (Bankr. E.D. Va. Case Nos. 14-34080 and 14-34081) in Richmond, Virginia, on July 30, 2014, without stating a reason. The cases are assigned to Judge Keith L. Phillips. The deadline for governmental entities to file proofs of claims is Jan. 26, 2015. Richmond, Virginia-based River City Renaissance estimated $10 million to $50 million in assets and debt. Renaissance III estimated less than $10 million in assets and debt. The Debtors have tapped Spotts Fain PC as counsel. ROCKWELL MEDICAL: Incurs $3.2 Million Net Loss in Second Quarter ---------------------------------------------------------------- Rockwell Medical, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.17 million on $13.03 million of sales for the three months ended June 30, 2014, as compared with a net loss of $11.86 million on $12.98 million of sales for the same period last year. For the six months ended June 30, 2014, the Company incurred a net loss of $10.97 million on $25.99 million of sales as compared with a net loss of $27.24 million on $25.32 million of sales for the six months ended June 30, 2013. As of June 30, 2014, the Company had $25.88 million in total assets, $29.79 million in total liabilities and a $3.91 million total shareholders' deficit. "We are pleased with our achievements and continued execution," stated Mr. Robert L. Chioini, founder, chairman and CEO of Rockwell Medical. "We achieved several important goals, including FDA acceptance of our Triferic NDA with a January 24, 2015 PDUFA date. We also received FDA manufacturing approval for Calcitriol, our generic, low-cost vitamin D injection. We are working in preparation of a successful Calcitriol commercial launch, while continuing to communicate with the FDA for their review for potential approval of Triferic, our novel iron delivery drug." Mr. Chioini further stated, "As anticipated, our R&D costs were reduced significantly. Our core business is solid and our gross margins are improving and consistent with our expectations. CitraPure continues to become the standard of care for dialysate in the renal market." A full-text copy of the Form 10-Q is available for free at: http://goo.gl/IWdk5N About Rockwell Rockwell Medical, Inc. (Nasdaq: RMTI), headquartered in Wixom, Michigan, is a fully-integrated biopharmaceutical company targeting end-stage renal disease ("ESRD") and chronic kidney disease ("CKD") with innovative products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis (also referred to as "HD" or "dialysis"). Rockwell's lead investigational drug is in late stage clinical development for iron therapy treatment in CKD-HD patients. It is called Soluble Ferric Pyrophosphate ("SFP"). SFP delivers iron to the bone marrow in a non-invasive, physiologic manner to hemodialysis patients via dialysate during their regular dialysis treatment. Rockwell Medical reported a net loss of $48.78 million in 2013, a net loss of $54.02 million in 2012 and a net loss of $21.44 million in 2011. SCRUB ISLAND: Panel Objects to Firstbank's Bid for Stay Relief -------------------------------------------------------------- The Official Committee of Unsecured Creditors of Scrub Island Development Group Limited and Scrub Island Construction Limited filed with the U.S. Bankruptcy Court for the Middle District of Tampa an objection to Firstbank Puerto Rico's motion for relief from the automatic stay. The Bank filed the motion on Dec. 14, 2013, seeking relief from stay to enforce its remedies, including foreclosure, regarding substantially all of the Debtors' assets. The Committee says in a court filing dated July 23, 2014, that the Bank's adequate protection argument is premised on an alleged inability of the Debtors to pay basic operating expenses. The Bank claims that "this inability to meet even basic operating expenses threatens the Debtors' ability to continue to operate, with an adjunct threat to their ability to maintain the value of Firstbank's collateral, depriving Firstbank of adequate protection and entitling it to relief from stay." The Committee argues that the dire predictions raised in the stay motion regarding the Debtors' inability to fund operations have proven to be false over the roughly seven months since the filing of the stay motion. The Committee says that to the extent the Debtors experience cash shortfalls going into their upcoming slow season, the shortfalls are expected to be covered by an anticipated DIP lending facility. According to the Committee, the adequate protection argument is flawed because the focus of adequate protection is to protect a secured creditor from a diminution in the value of its collateral while the automatic stay is in effect. "There is, however, no evidence in the record of a decline in the Bank's collateral value since the filing of the petitions. An inability to cover current expenses simply does not equate to a diminution in collateral values, as the Bank would have the Court presume," the Committee adds. The Bank claims that its collateral is not necessary for an effective reorganization. The Debtors, says the Bank, cannot confirm a plan because the Bank's deficiency claim will control the unsecured class and the Debtors will not be able to obtain the vote on an impaired class of claims. The Committee counters that this argument fails to take into account the lender liability action in which the Debtors seek to, among other things, equitably subordinate the Bank's claims. As of the filing of this objection, the Committee has sought to intervene in the lender liability action and to subordinate the claims of the Bank to the claims of all the Debtors' other creditors, as well as seek a transfer of the Bank's liens to the Debtors' estates. In light of the lender liability action, it is far from given that the Bank will hold a deficiency claim that controls voting in the cases, the Committee says. The Bank argues that its collateral is not necessary for an effective reorganization because the Debtors cannot confirm a plan due to feasibility. The Debtors, according to the Bank, will not be able to make appropriate cramdown payments ultimately required to be paid on account of its secured claim, an argument that the Committee says fails to take into account the pending lender liability action and the prospect that it may lose its lien altogether under Section 510(c)(2) of the Bankruptcy Code. About Scrub Island Scrub Island Development Group Ltd., the owner of a British Virgin Islands luxury resort, and its affiliate, Scrub Island Construction Limited, sought bankruptcy protection (Bankr. M.D. Fla. Case Nos. 13-15285 and 13-15286) on Nov. 19, 2013, to end a receivership Scrub Island claims was secretly put in place by its lender. The bankruptcy case is assigned to Judge Michael G. Williamson. The 230-acre resort operates as a Marriott Autograph Collection property. It has 52 rooms and suites, a spa and a 55-slip marina. Scrub Island Development Group scheduled $125,569,235 in total assets and $130,695,731 in total liabilities. The Debtors are represented by Charles A. Postler, Esq., and Harley E. Riedel, Esq., at Stichter, Riedel, Blain & Prosser, in Tampa, Florida. FirstBank Puerto Rico, the prepetition secured lender, is represented by W. Keith Fendrick, Esq., at Holland & Knight LLP, in Tampa, Florida. The Debtors are represented by Charles A. Postler, Esq., and Harley E. Riedel, Esq., at Stichter, Riedel, Blain & Prosser, in Tampa, Florida. FirstBank Puerto Rico, the Debtor's prepetition secured lender, is represented by W. Keith Fendrick, Esq., at Holland & Knight LLP, in Tampa, Florida. The Official Committee of Unsecured Creditors appointed in Scrub Island's cases has retained Robert B. Glenn, Esq., Edwin G. Rice, Esq., and Victoria D. Critchlow, Esq., at Glenn Rasmussen, P.A., as general counsel. SEALED AIR: S&P Assigns 'BB+' Rating on $2.13-Bil. Secured Loans ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' issue rating and '2' recovery rating to Sealed Air Corp.'s $2.13 billion senior secured credit facilities. The '2' recovery rating indicates S&P's expectation of substantial (70% to 90%) recovery in the event of a payment default. All S&P's other ratings on Sealed Air, including the 'BB' corporate rating, remain unchanged. The outlook remains stable. The company shall use the proceeds to refinance its existing revolver, term loan A, and term loan B borrowings, and for related fees and expenses. S&P's 'BB' corporate credit rating on Sealed Air Corp. is based on its assessment of the company's "strong" business risk and "aggressive" financial risk profile. S&P applies a downward adjustment of one notch for comparable rating analysis. RATINGS LIST Sealed Air Corp. Corporate Credit Rating BB/Stable/-- New Rating Sealed Air Corp. $2.13 Bil. Sr Sec. Credit Fac BB+ Recovery Rating 2 SEQUENOM INC: Earns $4.4 Million in Second Quarter -------------------------------------------------- Sequenom, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net earnings of $4.45 million on $39.78 million of net diagnostic services revenue for the three months ended June 30, 2014, as compared with a net loss of $31.02 million on $24.52 million of net diagnostic services revenue for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss of $11.22 million on $76.84 million of net diagnostic services revenue as compared with a net loss of $60.38 million on $53.60 million of net diagnostic services revenue for the same period in 2013. As of June 30, 2014, the Company had $131.60 million in total assets, $180.92 million in total liabilities and a $49.31 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/aQZDcs About Sequenom Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. Sequenom incurred a net loss of $107.40 million in 2013, a net loss of $117.02 million in 2012 and a net loss of $74.13 million in 2011. SEQUENOM INC: Posts $4.4 Million Net Earnings in Second Quarter --------------------------------------------------------------- Sequenom, Inc., reported net earnings of $4.45 million on $39.78 million of net diagnostic services revenue for the three months ended June 30, 2014, as compared with a net loss of $31.02 million on $24.52 million of net diagnostic services revenue for the same period in 2013. For the six months ended June 30, 2014, the Company incurred a net loss of $11.22 million on $76.84 million of net diagnostic services revenue as compared with a net loss of $60.38 million on $53.60 million of net diagnostic services revenue for the same period last year. As of June 30, 2014, the Company had $131.60 million in total assets, $180.92 million in total liabilities and a $49.31 million total stockholders' deficit. "We are pleased with the steady improvements in reimbursements and collections resulting in increased revenues," said Carolyn Beaver, chief financial officer, Sequenom. "We will continue to evaluate our collection history with the goal to move to accrual accounting for additional payors. We also remain focused on our cost improvement initiatives as we look to continue to build value for our shareholders." A full-text copy of the press release is available at: http://is.gd/OC6zap About Sequenom Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. Sequenom incurred a net loss of $107.40 million in 2013, a net loss of $117.02 million in 2012 and a net loss of $74.13 million in 2011. SG ACQUISITION: S&P Affirms 'B' CCR & Rates $225MM Loans 'B' ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit rating on SG Acquisition Inc. (SGA). The outlook is stable. At the same time, S&P assigned a 'B' issue-level rating to the proposed $210 million senior secured term loan and $15 million revolver. The recovery rating is '3', indicating S&P's expectation for average (50% to 70%) recovery for lenders in the event of a payment default. The company will use proceeds of the term loan to refinance its existing term loan. S&P expects essentially no change in total debt outstanding and for pro-forma debt leverage to be near 5.0x. SGA's fair business profile reflects its narrow focus on the ancillary finance and insurance (F&I) market, relatively small but growing revenue base, and client concentration. In this context, its market position is favorable, with leading or top-5 market positions for most of its products. SGA is the parent holding company for Safe-Guard Products International LLC (Safe-Guard), a third-party administrator (TPA) of claims and provider of ancillary F&I solutions for the motor vehicle industry. The company also wholly owns captive reinsurer Safe-Guard Reinsurance Co. Ltd., a source of some underwriting risk through reinsurance arrangements with fronting insurance carriers. S&P expects gross revenue to grow significantly in 2014, but we believe meaningful concentrations by product and client will still exist. SGA has, in S&P's view, a highly levered financial risk profile, based on its pro-forma leverage and coverage metrics. S&P characterizes its financial policy as very aggressive, stemming from its financial sponsor ownership and related recapitalization. From an accounting perspective, S&P adjusts reported revenue and EBITDA to reflect accounting that more precisely approximates cash flows, primarily by fully recognizing revenue and costs upon receipt of the contract (that is, no deferral of revenue or capitalization of expenses). S&P thinks this is necessary due to the accounting mismatch created by applying U.S. generally accepted accounting principles (GAAP). U.S. GAAP defers the earning of revenue generally over the coverage period, whereas most agent commissions which are fully expensed in the year they are incurred. S&P's stable outlook reflects its expectation that SGA's pace of organic growth will be strong for 2014 and then moderate for 2015. But it could be bolstered somewhat through acquisitions or the expansion of its product line with current clients. S&P also expects SGA to continue to reflect strong customer retention rates, which is a key component of its business risk profile. S&P could lower the rating if SGA were to lose one of its large clients resulting in gross revenues falling by 20% or more. S&P could also lower the rating if it came to view SGA's liquidity as less than adequate, if the bank covenant cushion fell to 10% or less, or if its sustained adjusted debt-to-EBITDA ratio were more than 6.0x. S&P could raise the rating if SGA reduces debt leverage to less than 4.0x, and it subsequently believed it would remain there. This could occur if SGA meaningfully reduces its debt burden and improves its adjusted EBITDA margin, which S&P do not expect through 2015. SMHC LLC: Plan Confirmation Hearing on Sept. 9 ---------------------------------------------- Judge Marci B. McIvor of the U.S. Bankruptcy Court for the Eastern District of Michigan, Southern Division, has entered an order granting preliminary approval of the disclosure statement explaining the plan of reorganization of SMHC, L.L.C., and Value Homes, LLC, and scheduled a hearing to consider confirmation of the plan for Sept. 9, 2014, at 10:30 a.m. The deadline to return ballots on the Plan and to file objections to final approval of the disclosure statement and confirmation of the Plan is extended to Sept. 4. The confirmation hearing was previously scheduled for July 15, but was adjourned by Judge McIvor at the agreement between the Debtors and Talmer Bank and Trust. The Debtors and the bank said they need the additional time to reach a resolution of the bank's potential objection to the Plan and Disclosure Statement. Talmer requested the opportunity to perform due diligence regarding the Debtors' operations and certain aspects of the Plan. Under the Plan, Talmer's Allowed Secured Claim, which total approximately $18,208,244, will be re-amortized over a 15-year period and will accrue interest rate of 4%. The remaining portion of Talmer's Claims will constitute unsecured claims, which won't be paid by the Debtors. To satisfy Signature's Claims, which total $948,838, Signature will continue to receive its regular, monthly payments from Value Homes. Rights of holders of interests of the equity security holders will remain intact as they existed as of the Petition Date. A full-text copy of the Plan dated June 6 is available at http://bankrupt.com/misc/SMHCLLCplan0606.pdf SMHC LLC, owner and operator of eight manufactured home parks in the southern half of Michigan's Lower Peninsula, sought protection under Chapter 11 of the Bankruptcy Code on April 1, 2014. The case is In re SMHC LLC, Case No. 14-45579 (E.D. Mich.). The case is assigned to Judge Marci B. McIvor. The Debtor's counsel is Jason W. Bank, Esq., at Kerr, Russell and Weber, PLC, in Detroit, Michigan; and Daniel G. Byrne, Esq., at Kerr, Russell and Weber, PLC, in Detroit, Michigan. The Debtor disclosed $14,407,518 in assets and $18,211,672 in liabilities as of the Chapter 11 filing. STACEY ELECTRIC: Files Bankruptcy; Creditors Meeting on Aug. 12 --------------------------------------------------------------- Stacey Electric Company Limited filed for bankruptcy in Ontario on July 22, 2014. The first meeting of creditors in that case is set for Aug. 12, 2014, at 10:00 a.m. at the Office of the Trustee at 2300 Yonge Street, Suite 1701, in Toronto. The Trustee may be reached at: James Williams & Associates Inc. 2300 Yonge Street, Suite 1701 Toronto, ON M4P 1E4 TACTICAL INTERMEDIATE: Sec. 341 Creditors' Meeting Set for Aug. 11 ------------------------------------------------------------------ The U.S. Trustee for Region 3 will convene a meeting of creditors pursuant to 11 U.S.C. 341(a) in the Chapter 11 case of Tactical Intermediate Holdings, Inc. on Aug. 11, 2012, at 10:30 a.m. The meeting will be held at J. Caleb Boggs Federal Building, at 844 King Street, Wilmington DE 19801. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Tactical Intermediate Tactical Intermediate Holdings, Inc., and its affiliates' operations are comprised of two major lines of business -- a footwear line, and a fabric and clothing line, including flame resistant material ("Massif"). Footwear is comprised of the Altama group ("Altama") and the Wellco Group ("Wellco"). Wellco was founded in 1941 and manufactures and sells combat boots, primarily for the United States Military as well as commercial uniform and work boots for a variety of customers. Altama was founded in 1969 and manufactures and sells boots for the United States and international militaries as well as for federal, state and local agencies, military schools, police, uniform shops and Army/Navy retailers. Headquartered in Ashland, Oregon, Massif was founded in 1999 by a group of veteran search and rescue team members and alpine climbers who believed that the options for sanctioned fire resistant protective gear at the time were too limited. Massif is a world leader in supplying flame resistant and high performance outdoor apparel to the military, law enforcement, search and rescue professionals, and the wildland firefighting community. Tactical Intermediate Holdings, Inc., and its affiliates sought Chapter 11 protection in Delaware on July 8, 2014, with plans to quickly sell their assets. Judge Kevin Gross is assigned to the Chapter 11 cases. The Debtors have requested joint administration of the cases under Case No. 14-11659. The Debtors have tapped Klehr Harrison Harvey Branzburg LLP as counsel, FTI Consulting, Inc., as financial advisor, Houlihan Lokey Capital, Inc., as investment banker, and PrimeClerk as claims and noticing agent. Massif Apparel Enterprises LLC, the entity formed by Sun Capital Partners Group V LLC, to serve as stalking horse bid for Massif's assets, is represented by Corey Fox, Esq., Brad Weiland, Esq., and Gregory F. Fesce, Esq., at Kirkland & Ellis LLP. TACTICAL INTERMEDIATE: 3-Member Creditor's Committee Formed ----------------------------------------------------------- Roberta a. DeAngelis, the U.S. Trustee for Region 3, appointed three members to serve in the official committee of unsecured creditors in the Chapter 11 cases of Tactical Intermediate Holdings, Inc., et al. The Creditors Committee members are: 1. W.L. Gore and Associates, Inc., Attn: Robin Brewer 551 Papermill Road, Newark, DE 19711 Tel: (410) 506-5048 Fax: (410) 506-5476 2. Tasman Leather Group, LLC c/o Tasman Industries, Inc. Attn: David Ernstberger 930 Geiger Street, Louisville, KY 40206 Tel: (502) 357-2533 Fax: (502) 581-0697 3. CaribEx Worldwide 4248 Piedmont Parkway, Greensboro, NC 27410 Tel: (336) 315-0443 Fax: (336) 315-0529 About Tactical Intermediate Tactical Intermediate Holdings, Inc., and its affiliates' operations are comprised of two major lines of business -- a footwear line, and a fabric and clothing line, including flame resistant material ("Massif"). Footwear is comprised of the Altama group ("Altama") and the Wellco Group ("Wellco"). Wellco was founded in 1941 and manufactures and sells combat boots, primarily for the United States Military as well as commercial uniform and work boots for a variety of customers. Altama was founded in 1969 and manufactures and sells boots for the United States and international militaries as well as for federal, state and local agencies, military schools, police, uniform shops and Army/Navy retailers. Headquartered in Ashland, Oregon, Massif was founded in 1999 by a group of veteran search and rescue team members and alpine climbers who believed that the options for sanctioned fire resistant protective gear at the time were too limited. Massif is a world leader in supplying flame resistant and high performance outdoor apparel to the military, law enforcement, search and rescue professionals, and the wildland firefighting community. Tactical Intermediate Holdings, Inc., and its affiliates sought Chapter 11 protection in Delaware on July 8, 2014, with plans to quickly sell their assets. Judge Kevin Gross is assigned to the Chapter 11 cases. The Debtors have requested joint administration of the cases under Case No. 14-11659. The Debtors have tapped Klehr Harrison Harvey Branzburg LLP as counsel, FTI Consulting, Inc., as financial advisor, Houlihan Lokey Capital, Inc., as investment banker, and PrimeClerk as claims and noticing agent. Massif Apparel Enterprises LLC, the entity formed by Sun Capital Partners Group V LLC, to serve as stalking horse bid for Massif's assets, is represented by Corey Fox, Esq., Brad Weiland, Esq., and Gregory F. Fesce, Esq., at Kirkland & Ellis LLP. TALOS ENERGY: S&P Revises Outlook to Positive & Affirms 'B-' CCR ---------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its rating outlook to positive from stable on Houston-based Talos Energy LLC and affirmed its 'B-' corporate credit rating on the company. S&P's issue rating on the company's unsecured notes remains 'CCC+' (one notch lower than the corporate credit rating). The recovery rating on these notes remains '5', reflecting S&P's expectation of modest (10% to 30%) in the event of a payment default. Although S&P do not currently anticipate a meaningful change in recovery prospects for senior unsecured noteholders following the completion of the planned asset acquisition, S&P will reassess the recovery rating following an updated company-provided PV-10 under its recovery methodology, inclusive of the acquired assets and reflective of any revisions to the borrowing base. The positive outlook reflects S&P's view that the acquisition of Gulf of Mexico assets from Stone Energy meaningfully improves Talos' size and scale of reserves and production. Talos is acquiring these assets for $200 million in cash (which S&P expects will be reduced for purchase price adjustments from the effective date) and future undiscounted abandonment liabilities estimated to be $117 million. The transaction is expected to close in early August and has an effective date of April 1, 2014. "The outlook is positive to reflect the potential for an upgrade in the next 12 months if the company is able to increase production and reserves through the development of its existing and acquired asset base while maintaining solid credit measures," said Standard & Poor's credit analyst Marc Bromberg. S&P could raise the rating to 'B' if Talos continues to execute its development program, with production, costs, and spending in line with S&P's current expectations. S&P also expects that the proved developed reserve to production ratio will remain at least at current levels, in the mid-4x area. In addition, an upgrade will depend on prudent management of acquisitions such that FFO to debt will remain at least 20%. S&P also expects that Talos will continue to maintain adequate liquidity. S&P could revise the outlook to stable if the company is unable to maintain production, costs, or spending in line with its current forecast. S&P could foresee such a scenario if the company encounters takeaway issues in the Gulf, if the integration of Stone assets fails to meet our expectations (i.e., higher costs or lower production than forecast), or if the company's spending program is higher than contemplated without a commensurate increase in production. TRINITY COAL: Unit Can't Reject Agreements With ICG Entities ------------------------------------------------------------ Bankruptcy Judge Tracey N. Wise in Lexington, Ky., said Little Elk Mining Company, LLC, a debtor affiliate of Trinity Coal Corporation, cannot reject agreements with ICG Natural Resources, LLC and ICG Hazard, LLC. The Court finds that the agreements sought to be rejected are part of an indivisible, integrated property exchange transaction entered into between Little Elk and the ICG Entities. Pursuant to 11 U.S.C. Sec. 365, the Debtors move to reject two contracts with the ICG Entities. The first contract is a Disposal Agreement dated June 23, 2008, entered into between Little Elk and the ICG Entities, and second is an Easement Agreement also dated June 23, 2008, entered into between Little Elk and Hazard. The ICG Entities raise several objections to the Motion, including an argument that the ICG Agreements are an indivisible part of a larger, comprehensive property exchange transaction among the parties that occurred in June 2008; the ICG Agreements cannot be severed from that transaction, and thus, cannot be rejected. The ICG Entities and debtor Little Elk have adjacent coal properties located in Breathitt County, Perry County, and Knott County, Kentucky, which they, or their predecessors, acquired in 2004 through separate sales from a prior bankruptcy case. In 2008, the ICG Entities and Little Elk determined that "the way the property had been divided in 2004 was in some respects cumbersome and illogical." To remedy this, the parties negotiated a comprehensive property exchange that would allow the companies to consolidate their property interests and rights in a way that would facilitate mining and make their respective operations and properties more logical and workable. The 2008 Transaction closed on June 23, 2008, involved approximately 5,500 acres of mineral properties and was documented by a series of agreements, all as more particularly described in a master Property Exchange Agreement. The purpose of the 2008 Transaction was for the parties to "exchange certain interests in their respective coal rights and surface tracts and to take other actions to enable each of them to conduct their respective coal mining operations more efficiently." The ICG Entities are continuing to operate mines on the properties in which they obtained rights pursuant to the 2008 Transaction, and they deem continuation of their rights under the ICG Agreements to be essential to their business operations. Little Elk has ceased mining operations, and the Debtors have determined that the ICG Agreements are burdensome to their estates. A copy of the Court's July 31, 2014 Opinion and Order is available at http://is.gd/T5CAh5from Leagle.com. UNIFIED 2020: Has Final Authority to Use Cash Collateral -------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, gave Unified 2020 Realty Partners, LP, final authority to use cash collateral securing its prepetition indebtedness. The cash collateral will be used to continue the Debtor's ongoing operations, which involves the ownership and leasing of infrastructure critical telecommunications companies and data center facilities. Daniel J. Sherman, the Chapter 11 Trustee, is also authorized to collect and receive all accounts receivable and enter into all agreements pursuant to the terms of the Order necessary to allow the Trustee to use Cash Collateral subject to the protections and consideration in the amounts and for the expenses for the period of May 1 through Aug. 31, 2014. As of the later of (a) Aug. 5, (b) the date of entry of the lifting of the automatic stay as to the Collateral, or (c) June 27, any cash collateral held by the Trustee after payment of expenses and payments through Aug. 31, will be unencumbered and cease being Cash Collateral of the Bank's provided further that income, revenue, proceeds and claims arising out of or related to the Collateral that is paid to, or received by, the Trustee after the latter of the specified dates will be the Bank's property. About Unified 2020 Realty Unified 2020 Realty Partners, LP, was formed in November 2007 to own the real property and improvements located at 2020 Live Oak Street, in Dallas, Texas. The property is comprised of a 12-story office building and an adjacent three-story parking garage and annex. Unified 2020 filed a petition under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 13-32425) in its home-town in Dallas on May 6, 2013. The petition was signed by Edward Roush as president of general partner. Judge Stacey G. Jernigan presides over the Chapter 11 case. In its schedules, the Debtor disclosed $280,178,409 in assets and $46,378,972 in liabilities. Arthur I. Ungerman, Esq., and Kerry S. Alleyne-Simmons, Esq., at the Law Office of Arthur Ungerman, in Dallas, Texas, represent the Debtor. Peter C. Lewis, Esq., and Jacob W. Sparks, Esq., at Scheef & Stone, LLP, in Dallas, Texas, represent United Central Bank. The Debtor consented to the appointment of a trustee, and on Aug. 9, 2013, Daniel J. Sherman was appointed as Chapter 11 trustee. Kevin D. McCullough, Esq., of Rochelle McCullough L.L.P. serves as general bankruptcy counsel to the trustee. The Debtor has obtained permission from the Bankruptcy Court to proceed with the pursuit of its disclosure statement and plan, in tandem or parallel with any effort by the trustee to propose a plan. In January 2014, Unified 2020 Realty Partners withdrew its second amended disclosure statement, which explains the company's plan of liquidation. At that time, the Debtor said it remains involved in a negotiation process and do not want to impose upon the court's time by filing another request to continue the disclosure statement hearing. United Central Bank objected to the Plan, saying the Plan is not feasible, much less confirmable within a reasonable period of time. USEC INC: ACTDO Agreement Extended Through March 2015 ----------------------------------------------------- USEC Inc. on July 31, 2014, entered into Amendment No. 005 to the agreement dated May 1, 2014 with UT-Battelle, LLC, as operator of Oak Ridge National Laboratory, for continued research, development and demonstration of the American Centrifuge technology in furtherance of the U.S. Department of Energy's national security objectives. Amendment No. 005 exercises the option to extend the period of performance for the ACTDO agreement by an additional six months to March 31, 2015 and increases the total price from approximately $33.7 million to approximately $75.3 million. The other terms and conditions of the ACTDO Agreement were not changed by the Amendment. The ACTDO Agreement provides for continued cascade operations, the continuation of core American Centrifuge research and technology activities, and the furnishing of related reports to ORNL. The agreement is a firm fixed-price contract with a total price of approximately $75.3 million for the period from May 1, 2014 to March 31, 2015. The agreement provides for payments of approximately $6.7 million per month through September 31, 2014 and approximately $6.9 million thereafter. The ACTDO Agreement is incrementally funded. Funds currently allocated to the ACTDO Agreement are expected to cover the work to be performed through August 5, 2014. The agreement also provides ORNL with one additional option to extend the agreement by six months to September 30, 2015. The option is priced at approximately $41.7 million. ORNL may exercise its option by providing notice 60 days prior to the end of the term of the agreement. The total price of the contract including options is approximately $117 million. About USEC Inc. USEC Inc. filed a Chapter 11 bankruptcy petition (Bank. D. Del. Case No. 14-10475) on March 5, 2014. John R. Castellano signed the petition as chief restructuring officer. The Hon. Christopher S. Sontchi presides over the case. D. J. Baker, Esq., Rosalie Walker Gray, Esq., Adam S. Ravin, Esq., and Annemarie V. Reilly, Esq., at Latham & Watkins LLP, serve as the Debtor's general counsel. Amanda R. Steele, Esq., Mark D. Collins, Esq., and Michael J. Merchant, Esq., at Richards, Layton & Finger, P.A., serve as the Debtor's Delaware counsel. Vinson & Elkins is the Debtor's special counsel. Lazard Freres & Co. LLC acts as the Debtor's investment banker. AP Services, LLC, provides management services to the Debtor. Logan & Company Inc. serves as the Debtor's claims and noticing agent. Deloitte Tax LLP are the Debtor's tax professionals. The Debtor's independent auditor is PricewaterhouseCoopers LLP. KPMG LLP provides fresh start accounting services to the Debtors. * * * The Court approved the disclosure statement explaining USEC Inc.'s plan of reorganization on July 7, 2014. The Confirmation Hearing is scheduled for Sept. 5, 2014, at 1:00 p.m. (Eastern time). The Plan Objection Deadline is Aug. 22, and the deadline for filing a reply to objections to confirmation of the Plan, if any, is Sept. 2. VERIS GOLD: Obtains Sept. 4 Extension of CCAA Stay Period --------------------------------------------------------- Veris Gold Corp. on Aug. 1 disclosed that it has obtained an order from the Supreme Court of British Columbia extending the period of the Court-ordered stay of proceeding against Veris and its subsidiaries under the Companies' Creditors Arrangement Act ("CCAA") up to and including Sept. 4, 2014. The Company has been operating under the protection of the CCAA since June 9, 2014. 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 website: 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: Announces Final Results of Exchange Offer ----------------------------------------------------- Verso Paper Corp. announced the final results of the exchange offer and consent solicitation by two of its subsidiaries, Verso Paper Holdings LLC and Verso Paper Inc. with respect to the Issuers' outstanding 8.75% Second Priority Senior Secured Notes due 2019 and the early tender results of the previously announced exchange offer and consent solicitation by the Issuers with respect to the Issuers' outstanding 11 3?8% Senior Subordinated Notes due 2016. The exchange offers and consent solicitations 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. As of 12:00 midnight, New York City time, at the end of July 30, 2014, holders of approximately $299.4 million aggregate principal amount of Old Second Lien Notes have tendered their Old Second Lien Notes in the Second Lien Notes Exchange Offer, and holders of approximately $102 million aggregate principal amount of Old Subordinated Notes have tendered their Old Subordinated Notes in the Subordinated Notes Exchange Offer. "We thank our noteholders for their strong support that has helped us satisfy the minimum participation conditions for the exchange offers," said Verso President and CEO Dave Paterson. "We have made significant progress to completing our acquisition of NewPage." These tenders of the Old Second Lien Notes prior to the Second Lien Notes Expiration Time represent approximately 75.6% of the aggregate principal amount of the outstanding Old Second Lien Notes, which exceeds the 75% minimum participation condition for the Second Lien Notes Exchange Offer. As a result of the participation of holders of Old Second Lien Notes in the Second Lien Notes Exchange Offer, the principal amount of Second Priority Adjustable Senior Secured Notes following the Merger per $1,000 principal amount of New Second Lien Notes prior to the Merger will be $593.75. In addition, the Issuers have received the requisite consents for the proposed amendments to the indenture pursuant to which the Old Second Lien Notes were issued, which modify certain restrictive covenants contained therein. The Issuers expect to promptly execute a supplemental indenture that gives effect to these proposed amendments and will become operative upon the final settlement of the Second Lien Notes Exchange Offer. Early Tender Results of Subordinated Notes Exchange Offer The Issuers received tenders from holders of approximately $102.0 million aggregate principal amount of Old Subordinated Notes prior to 12:00 midnight, New York City time, at the end of July 30, 2014. These tenders of the Old Subordinated Notes prior to the Subordinated Notes Early Tender Time represent approximately 71.6% of the aggregate principal amount of the outstanding Old Subordinated Notes, which exceeds the 70% minimum participation condition for the Subordinated Notes Exchange Offer. The Subordinated Notes Exchange Offer will remain open until it expires as scheduled at 12:00 midnight, New York City time, at the end of Aug. 6, 2014. In addition, the Issuers have received the requisite consents for the proposed amendments to the indenture pursuant to which the Old Subordinated Notes were issued, which modify certain restrictive covenants contained therein. The Issuers expect to promptly execute a supplemental indenture that gives effect to these proposed amendments and will become operative upon the early settlement of the Subordinated Notes Exchange Offer. The complete terms and conditions of the Subordinated Notes Exchange Offer remain the same as set forth in the Amended and Restated Confidential Offering Memorandum and Consent Solicitation Statement dated July 24, 2014, and the related consent and letter of transmittal. 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. VIAWEST INC: S&P Puts 'B' CCR on Watch Pos. Over Shaw Comm. Deal ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B' corporate credit rating on Denver-based ViaWest Inc. on CreditWatch with positive implications. The CreditWatch placement follows the company's announcement that it signed a definitive agreement to be acquired by Calgary-based Shaw Communications Inc. in a transaction valued at $1.2 billion. The CreditWatch placement on ViaWest reflects the likelihood that S&P could raise its ratings on the company following the proposed acquisition by higher-rated Shaw. S&P's investment-grade rating on Shaw reflects the company's sizeable cable TV operations, which serve more than 5 million revenue generating units in five Canadian provinces. The transaction is subject to regulatory approvals in the U.S. with an expected close in September 2014. Shaw announced it will fund the acquisition with a combination of cash and borrowings under its existing credit facility. Following the transaction close, S&P expects ViaWest to be a wholly owned subsidiary of Shaw, with ViaWest's existing debt rolled over and remaining at ViaWest Inc., with no recourse to Shaw. If Shaw is unable to amend change of control provisions at the existing ViaWest facility, S&P expects existing debt would be refinanced at the ViaWest subsidiary with new debt non-recourse to Shaw. ViaWest is a colocation, managed and cloud services provider primarily serving small and midsize enterprise customers in second-tier metro markets in the U.S., with no current operations in Canada. The company is currently controlled by private equity owners Oak Hill Capital Partners, and GI Partners. "As part of our review, we will assess ViaWest's overall creditworthiness on a stand-alone basis, which will incorporate potential modest benefits to the company's business risk profile as a result of the transaction, as well as the company's capital structure and financial policy under public ownership. Additionally, we will factor in the extent and likelihood of financial support from Shaw. As a result, we could raise the corporate credit rating on ViaWest as high as 'B+', one notch above the current corporate credit rating," S&P said. VULCAN MATERIALS: S&P Raises Corp. Credit Rating to 'BB+' --------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Birmingham, Ala.-based aggregates producer Vulcan Materials Co. to 'BB+' from 'BB'. The outlook is stable. At the same time, S&P raised the issue-level ratings on the senior notes one notch to 'BB+' from 'BB'. The recovery ratings remain unchanged at '3', indicating S&P's expectation of meaningful (50% to 70%) recovery in the event of default. The upgrade reflects the recent debt reduction from the noncore asset sale, and S&P's expectations for improving industry fundamentals will improve EBITDA and will result in credit measures sustained at levels commensurate with an "aggressive" financial risk profile, with leverage of about 4x and funds from operations (FFO) to debt of slightly less than 20%. An "aggressive" financial risk profile, along with S&P's assessment of a "strong" business risk profile, supports the 'BB+' corporate credit rating. "The stable outlook reflects our expectation that Vulcan's credit measures will be maintained at levels commensurate with an "aggressive" financial risk profile, with leverage of about 4x and FFO to debt below 20% by year-end, with further improvement in 2015," said Standard & Poor's credit analyst Maurice Austin. An upgrade could occur if debt to EBITDA falls and is sustained below 4x and FFO to debt rises and is sustained above 20%, levels in line with a "significant" financial risk profile. This could occur if the company obtained mid-single-digit price increases and double-digit percentage volume growth over the next 12 months. A negative rating action seems unlikely in the near term, based on S&P's expectation that construction markets will continue to improve during 2014. However, a downgrade could occur if Vulcan failed to show improvement in its results during the next year, such that leverage increases above 5x. WALTER ENERGY: Incurs $151.4 Million Net Loss in 2nd Quarter ------------------------------------------------------------ Walter Energy, Inc., reported a net loss of $151.39 million on $378.35 million of revenues for the three months ended June 30, 2014, as compared with a net loss of $34.49 million on $441.49 million of revenues for the same period in 2013. For the six months ended June 30, 2014, the Company incurred a net loss of $243.56 million on $792.23 million of revenues as compared with a net loss of $83.93 million on $932.83 million of revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $5.46 billion in total assets, $4.90 billion in total liabilities and $557.33 million in stockholders' equity. "Our operations performed well in the second quarter," said Walt Scheller, chief executive officer. "We controlled costs, reduced inventories, and had solid coal production and sales despite idling our Canadian mines. In addition, we kept tight control over our capital spending as well as selling, general and administrative costs. "We also improved liquidity and financial flexibility through our recent successful notes offering," Scheller continued. "I believe we have made great strides in positioning the Company to manage through the current difficult market for met coal." Available liquidity was $563.9 million at the end of the quarter, consisting of cash and cash equivalents of $293.5 million plus $270.4 million in availability under the Company's $313.8 million revolving credit facilities, net of outstanding letters of credit of $43.4 million. A full-text copy of the press release is available for free at: http://goo.gl/VCKsYp 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. * * * 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. The downgrade in the corporate family rating reflects the anticipated deterioration in performance, increased cash burn and increase in leverage, given the recent met coal benchmark settlement of $120 per tonne for high quality coking coal and our expectation that meaningful recovery in metallurgical coal markets is twelve to eighteen months away. WALTER ENERGY: Bank Debt Trades at 6% Off ----------------------------------------- Participations in a syndicated loan under which Walter Energy Inc is a borrower traded in the secondary market at 94.50 cents-on- the-dollar during the week ended Friday, Aug. 1, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 1.00 percentage points from the previous week, The Journal relates. Walter Energy Inc. pays 575 basis points above LIBOR to borrow under the facility. The bank loan matures on March 14, 2018. The bank debt carries Moody's B3 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 249 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. WORLD PROPERTIES: Must File Plan by Sept. 5 to Avoid Foreclosure ---------------------------------------------------------------- Bankruptcy Judge Albert S. Dabrowski in Connecticut granted, in part, the request of DF Realty, LLC, for relief from the automatic stay in the Chapter 11 case of World Properties, LLC. Judge Dabrowski said the automatic stay of 11 U.S.C. Sec. 362(a) is modified by conditioning its continuation as follows: 1. The Debtor shall make full payment of the real estate property taxes currently due to the Town of Enfield, no later than August 1, 2014, 2. On or before September 5, 2014, the Debtor must file a Disclosure Statement and a Plan of Reorganization that has "a reasonable possibility of its being confirmed within a reasonable time" as set forth in Bankruptcy Code Sec. 362(d)(3)(A), and 3. At least preliminary approval of a zoning change regarding the Debtor's property from commercial to HD Multi-family from the town of Enfield, Connecticut will be obtained no later than November 14, 2014. In the event the Debtor fails to comply with any one of the terms set forth, DF may file an affidavit with the Court, and serve on the Debtor and its counsel, all creditors and the United States Trustee, indicating the nature of the default and, in the absence of a counter-affidavit filed by the Debtor's Counsel within 5 days of service of the Affidavit, limited to controverting the existence of the Default, the Court will enter an Order granting relief from the stay to permit DF, and/or its successors and assigns, to commence, continue and prosecute to judgment a foreclosure action and otherwise exercise its rights, if any, with respect to the Property in accordance with applicable state law. DF asserts a claim secured by an interest in the Debtor's real estate consisting of 136 acres of undeveloped real property on the easterly side of King Street (Route 5) situated in the Town of Enfield, State of Connecticut, also known as 1697 King Street, Enfield, Connecticut. When it filed for bankruptcy, the Debtor designated the nature of its business as involving "Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B)". More than 90 days have passed since the entry of the order for relief in this case and the Debtor has failed to file a plan of reorganization or commence monthly payments as required by Bankruptcy Code Sec. 362(d)(3)(A) or (B). In a judgment of foreclosure by sale entered on November 12, 2013, the Connecticut Superior Court determined the fair market value of the Property to be $1,630,000, DF's secured debt to be $1,356,681.80, attorneys' fees to be $6,175, appraisal fee to be $3,500 and a title search fee to be $225. While interest continues to accrue on the debt together with costs and attorneys' fees, the Debtor appears to have equity in the property and DF concedes that it is adequately protected at this time. In opposing DF's request, the Debtor has presented to the Court a Purchase Agreement and Rider to Purchase Agreement dated July 9, 2014 and entered into by the Debtor as seller and Arnold Peck as purchaser of 135 acres of the Property along with a copy of a check made payable to the Debtor's attorney Kevin Mason for $50,000, representing a deposit toward a total purchase price of $4.5 million. A copy of the Court's July 29, 2014 Brief Memorandum and Order is available at http://is.gd/bA0cCGfrom Leagle.com. World Properties, LLC, based in Bloomfield, CT, filed for Chapter 11 bankruptcy (Bankr. D. Conn. Case No. 14-20535) on March 24, 2014, in Hartford. Judge Albert S. Dabrowski presides over the case. The Law Offices of Kevin L. Mason, Esq., serves as the Debtor's counsel. In its petition, the Debtor listed total assets of $3 million and total liabilities of $4.08 million. The petition was signed by Antonio Reale, authorized individual. WPCS INTERNATIONAL: CFO to Resign on August 31 ---------------------------------------------- Previously, WPCS International Incorporated entered into a separation agreement with Joseph Heater, the Company's chief financial officer, pursuant to which Mr. Heater was to resign, effective at the close of business on July 31, 2014. On July 28, 2014, the Company and Mr. Heater entered into an amendment to the Separation Agreement pursuant to which Mr. Heater will resign, effective at the close of business on Aug. 31, 2014, as the chief financial officer of the Company and from all officer and director positions with the Company's subsidiaries. Pursuant to the Separation Agreement, as amended by the Amendment, the Company will pay Heater the sum of $250,000 between the Termination Date and Jan. 31, 2015, which will be payable in five monthly installments of $41,666.67, payable on the first business day of each month from September through January 2015 and one (1) final payment of $41,666.65 to be made on Jan. 31, 2015. In addition, Heater will receive a bonus of $35,000, to be paid on July 31, 2014. On Aug. 31, 2015, the Company will pay Mr. Heater for all accrued but unpaid vacation time. Mr. Heater will also receive medical and other insurance benefits through Jan. 31, 2015, under the applicable plans maintained by the Company. Further, subject to stockholder approval of an increase in authorized common stock, the Company will grant Mr. Heater options to purchase 50,000 shares of common stock pursuant to the newly adopted stock incentive plan, which options will vest immediately upon issuance and will expire on Jan. 31, 2015. About WPCS International Incorporated WPCS -- http://www.wpcs.com-- operates in two business segments including: (1) providing communications infrastructure contracting services to the public services, healthcare, energy and corporate enterprise markets worldwide; and (2) developing a Bitcoin trading platform. As reported by the TCR on Feb. 7, 2014, WPCS appointed Marcum LLP as its new independent registered public accounting firm. CohnReznick LLP resigned on Dec. 20, 2013. The Company's former auditors, CohnReznick LLP, in Roseland, New Jersey, expressed substantial doubt about WPCS International's ability to continue as a going concern following the annual report for the year ended April 30, 2013. The independent auditors noted that the Company has incurred net losses and negative cash flows from operating activities, had a working capital deficiency as of and for the years ended April 30, 2013, and 2012, and has an accumulated deficit as of April 30, 2013. As of Jan. 31, 2014, the Company had $22.37 million in total assets, $15.18 million in total liabilities and $7.19 million in total equity. "At January 31, 2014, the Company has losses from operations, and has outstanding balances due to its former surety under a forbearance agreement of $1,533,757. These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments to the carrying amount and classification of recorded assets and liabilities should the Company be unable to continue operations. Management's plans are to continue to raise additional funds through the sales of debt or equity securities. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful," the Company stated in its quarterly report for the period ended Jan. 31, 2014. WPCS INTERNATIONAL: Sold Australia Operations for $1.4 Million -------------------------------------------------------------- WPCS International Incorporated announced that on July 31, 2014, the Company completed the sale of The Pride Group (QLD) Pty Ltd., to Turquino Equity LLC, whose managing member is Andrew Hidalgo, the former Chairman and CEO of WPCS. With the sale, the Company eliminates its outstanding $1.1 million severance obligation to Hidalgo. Sebastian Giordano, interim CEO of WPCS, commented, "The sale of our unprofitable Australia Operations falls in line with our restructuring strategy and is another key step in our turnaround, separating ourselves from a non-core business that was underperforming and declining in value. We have now successfully disposed two unprofitable operations in Australia and Trenton, while settling the remaining $1.1 million severance obligation to Hidalgo through this sale. The Company agreed to sell the Australia Operations to Turquino for a purchase price of $1.4 million. At closing, the purchase price was subject to adjustment based on the net tangible asset value of the Australia Operations, and the purchase price was to be settled by applying the net after tax severance balance due Hidalgo as payment towards the purchase price. At the closing, the parties agreed that the closing NTAV of the Australia Operations was $970,000. Hidalgo agreed to reduce the total severance owed to him under his separation agreement by about $167,000 to $970,000, the NTAV of the Australia Operations on the closing date. As a result, the Company was not required to make any further payments to Hidalgo pursuant to his separation agreement. Mr. Giordano continued, "We are now focused on closing on the sale of the assets of our Seattle Operations, which will bring working capital into the Company. This transaction is subject to shareholder approval and is expected to close in August 2014." On July 30, 2014, WPCS International Incorporated entered into a waiver agreement with holders of a majority of the outstanding senior secured convertible notes and warrants that were sold pursuant to a securities purchase agreement dated Dec. 4, 2012. The Notes are secured by a first priority lien on the assets of the Company and subsidiaries pursuant to a security and pledge agreement dated Dec. 4, 2012, by the Company and subsidiaries in favor of Worldwide Stock Transfer LLC, in its capacity as collateral agent for the Holders. As a result of the Waiver, the Collateral Agent released the stock of The Pride Group (QLD) Pty Ltd., a wholly-owned subsidiary of the Company, from Collateral pursuant to the Security Agreement. About WPCS International Incorporated WPCS -- http://www.wpcs.com-- operates in two business segments including: (1) providing communications infrastructure contracting services to the public services, healthcare, energy and corporate enterprise markets worldwide; and (2) developing a Bitcoin trading platform. As reported by the TCR on Feb. 7, 2014, WPCS appointed Marcum LLP as its new independent registered public accounting firm. CohnReznick LLP resigned on Dec. 20, 2013. The Company's former auditors, CohnReznick LLP, in Roseland, New Jersey, expressed substantial doubt about WPCS International's ability to continue as a going concern following the annual report for the year ended April 30, 2013. The independent auditors noted that the Company has incurred net losses and negative cash flows from operating activities, had a working capital deficiency as of and for the years ended April 30, 2013, and 2012, and has an accumulated deficit as of April 30, 2013. As of Jan. 31, 2014, the Company had $22.37 million in total assets, $15.18 million in total liabilities and $7.19 million in total equity. "At January 31, 2014, the Company has losses from operations, and has outstanding balances due to its former surety under a forbearance agreement of $1,533,757. These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments to the carrying amount and classification of recorded assets and liabilities should the Company be unable to continue operations. Management's plans are to continue to raise additional funds through the sales of debt or equity securities. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful," the Company stated in its quarterly report for the period ended Jan. 31, 2014. YMCA OF METROPOLITAN: Panel Has Nod to Hire Goldstein as Counsel ---------------------------------------------------------------- The Hon. Susan V. Kelley of the U.S. Bankruptcy Court for the U.S. Bankruptcy Court for the Eastern District of Wisconsin has authorized the Official Committee of Unsecured Creditors of The Young Men's Christian Association of Metropolitan Milwaukee, Inc., to retain Goldstein & McClintock LLLP as counsel, nunc pro tunc to July 21, 2014. As reported by the Troubled Company Reporter on July 17, 2014, the Committee hired Goldstein to, among other things, advise the Committee on all legal issues as they arise and represent and advise the Committee regarding the terms of any sales of assets or plans of reorganization or liquidation, and assisting the Committee in negotiations with the Debtor and other parties. Chris S. Mehring, Esq., a Goldstein, has withdrawn as counsel for the Committee. Mr. Mehring requested that the Court remove his name and e-mail address from the Court's Electronic Notice for Registrants for this Case, and from any and all service lists and mailing lists related to the Chapter 11 case. The Court previously denied the Committee's June 30, 2014 motion to employ Goldstein on July 17, 2014, after finding that: (i) Associated Bank is a current client of Goldstein & McClintock LLLP; and (ii) because Associated Bank is a secured creditor in this case, Goldstein has a conflict of interest with respect to representing the Committee. On July 9, 2014, the U.S. Trustee objected to Goldstein's employment due to a conflict of interest. According to the U.S. Trustee, Mr. Mehring is an income partner with Goldstein and has previously represented Associated Bank in connection with commercial loan issues. The Committee stated in its motion that "although Mr. Mehring has no active matters with the Associated Bank, he intends to continue to represent Associated Bank on matters unrelated to this case in the future," a statement that the U.S. Trustee found vague and failed to set forth in detail the full extent of Mr. Mehring's connections with Associated Bank. A hearing on the matter was set for July 16, 2014. Goldstein responded to the U.S. Trustee's objection on July 11, 2014, stating, "Chris Mehring has previously represented Associated Bank in connection with commercial loan issues. Although Mr. Mehring has no active matters with the Associated Bank, he intends to continue to represent Associated Bank on matters unrelated to this case in the future." On July 14, 2014, the Debtor joined the U.S. Trustee's objection, saying that roughly 30% of the total fees collected during the last 12 months came from working for Associated. "In short, Attorney Mehring relies heavily on Associated to make his living," the Debtor said. In a court filing dated July 15, 2014, Goldstein responded, "Unable to make a real legal argument, the joinder, like the objection, focuses on and plays up: (a) the relationship of Mehring -- one G&M partner -- with Associated (as opposed to the firm's relatively de-minimis relationship) and (b) Associated's involvement in the case. G&M's ability to actively represent the Committee's interests, including in matters adverse to the Bank Group, will in no way be limited by Mehring's relationship with Associated. First, lead counsel to the Committee (Matthew McClintock) has never represented Associated. In fact, since Mehring joined the firm, no other attorney at G&M has represented Associated, other than one law clerk, now an associate, who performed less than six hours of work. Accordingly, even if Associated was the sole or controlling lender here -- which it is not -- G&M would be fully able to take positions adverse to Associated (including pursuing preferences or taking other actions)." About YMCA of Milwaukee The Young Men's Christian Association of Metropolitan Milwaukee, Inc., and affiliate, YMCA Youth Leadership Academy, Inc., filed voluntary Chapter 11 bankruptcy petitions (Bankr. E.D. Wis. Case Nos. 14-27174 and 14-27175) in Milwaukee, on June 4, 2014. YMCA Milwaukee, which has more than 100,000 members using its centers and camps, plans to sell a majority of its owned real estate to help pay down $29 million in debt. YMCA Milwaukee estimated $10 million to $50 million in both assets and liabilities. YMCA Academy estimated $100,000 to $500,000 in both assets and liabilities. The formal schedules of assets and liabilities are due June 18, 2014. The Debtors are seeking joint administration of their Chapter 11 cases for procedural purposes. The cases are assigned to Judge Susan V. Kelley. The Debtors have tapped Olivier H. Reiher, Esq., and Mark L. Metz, Esq., at Leverson & Metz, S.C., in Milwaukee, as counsel. ZODIAC POOL SOLUTIONS: Seeks U.S. Recognition of UK Plan -------------------------------------------------------- Zodiac Pool Solutions SAS and its affiliates sought Chapter 15 bankruptcy protection in the U.S. to give effect of the restructuring plans approved by creditors and sanctioned by a court in the United Kingdom. The company was severely affected by the global economic and financial crisis that began in 2008. In 2008 and 2009, the company closed numerous factories and subsidiary operations throughout the world and divested its professional safety equipment and boats business, as part of a number of restructuring initiatives. The company, however, had to explore additional options in light of approaching maturities of its debt facilities on in September 2014 and September 2015. As of March 31, 2014, the Zodiac Group's net senior debt leverage ratio was 8.2X; although the Zodiac Group expects to reduce this ratio to 6.2x by Sept. 30, 2015, such ratio would remain above current acceptable market levels. As a result, it began negotiations with lenders and on May, it entered into a lock-up agreement with lenders. The High Court of Justice of England and Wales sanctioned the companies' schemes of arrangements on July 31, 2014. Creditors with majorities in value ranging from 79.97% to 98.09% and majorities in number ranging from 81.25% to 92.85% voted in favor of the schemes. The Debtors say that the schemes provide for an amendment and extension of certain substantial debt facilities under which several Zodiac Group entities, including the Debtors, are obligors. The English High Court has sanctioned the schemes, which involve, among other things, the extension of the current maturity dates under the facilities -- the earliest of which is due to occur on Sept. 27, 2014 -- and represents the best option for the Zodiac Group in the present circumstances, as the companies' current debt leverage ratio means that they are unable to refinance the debt owing under the facilities in the current market. The Debtors say that without the amendment and extension, in the absence of an alternative agreement with creditors, the uncertainty created may cause going concern issues to be raised by the Zodiac Group auditors, suppliers to reduce their payment terms or withdraw altogether, the withdrawal of short-term trade lines, the loss of or negotiation of terms of business with customers and the reduction of credit insurance, which would likely precipitate a rapid deterioration of the Zodiac Group. "If the Zodiac Group fails to secure the Amendment and Extension, one or more Zodiac Group companies may need to take steps towards the commencement of formal insolvency or pre-insolvency proceedings in multiple jurisdictions. Such proceedings would be likely to result in a substantial loss of value for all stakeholders, including Scheme Creditors. By contrast, the Amendment and Extension, as embodied in the Schemes, will provide the Zodiac Group with the time and financial flexibility it needs to continue deleveraging itself, with the aim of repaying the Senior Debt in full at or before the first extended maturity date of December 2017 (from the proceeds of a refinancing or sale) and of materially improving the returns to the Scheme Creditors who are lenders of Facility D and the Mezzanine Facility (potentially including repayment in full thereof)," Francois Mirallie, a company executive, said in a court filing. A copy of Zodiac's Chapter 15 bankruptcy petition and the foreign representative's verified petition for recognition of the foreign proceedings is available at: http://bankrupt.com/misc/Zodiac_Ch15_Petition.pdf About Zodiac Pool Solutions Zodiac Pool Solutions SAS and its units are global manufacturers and distributors of products for swimming pools and spas. Zodiac has design, engineering and manufacturing facilities in the U.S., France, Germany, Australia, and South Africa and has operating subsidiaries or branches with their own sales forces in the U.S., Canada, Europe, Australia, New Zealand and South Africa. Zodiac has pending proceedings before the High Court of Justice of England and Wales. The companies' schemes of arrangements were approved by the creditors and the High Court sanctioned the schemes on July 31, 2014. Zodiac and its affiliates sought bankruptcy protection in the U.S. under Chapter 15 of the Bankruptcy Code (Bankr. D. Del. Case No. 14-11818) on July 31, 2014, to seek recognition of their restructuring proceedings in the United Kingdom. Zodiac estimated at least $500 million in assets and more than $1 billion in debt. Judge Kevin J. Carey presides over the Chapter 15 cases. The Debtors are seeking administrative consolidation of the Chapter 15 cases. Francois Mirallie, executive member of the executive board and managing director of Zodiac, serves as foreign representative in the U.S. case. The Debtor is represented by Curtis S. Miller, Esq., at Morris Nichols Arsht & Tunnell, in Wilmington, Delaware. * Bankruptcy Filings Down 12% in June 2014 ------------------------------------------ Bankruptcy filings for the 12-month period ending June 30, 2014, fell 12 percent when compared to bankruptcy filings for the 12- month period ending June 30, 2013, according to statistics released by the Administrative Office of the U.S. Courts. June 2014 bankruptcy filings totaled 1,000,083, compared to the 1,137,978 bankruptcy cases filed in the 12-month period ending June 2013. This is the lowest total for bankruptcy filings in any 12-month period since June 2008. * Diligence Required to Avoid Pension Plan Minefields, Huron Says ----------------------------------------------------------------- The status of a company's pension plans can be key stumbling blocks in the sale or purchase of the company or even a credit agreement for ongoing financing of the business. Huron Consulting Group, a provider of business consulting services, on July 30 released a new Huron Business Advisory briefing, "Distressed company buyers and lenders: diligence required to avoid pension plan minefields," detailing steps buyers and lenders can take to fully understand any pension risks involved and avoid potential pitfalls. "A close vetting of the numbers during due diligence and a review of the entity's historic actions toward its plans are the first steps in the process," said Laura Marcero, CIRA, managing director, Huron Business Advisory. "Despite the potential for significant complications, it is possible to navigate safely through the complexities of acquiring or lending to distressed companies with pension plans." Among the key questions a potential buyer or lender should answer are: * How overfunded/underfunded is the pension plan? * Has the company/borrower failed to make required payments? If so, with accrued interest, how close is the entity to the $1 million threshold set by the Pension Benefit Guaranty Corporation (PBGC), the federal agency that oversees defined benefit pension plans? * Is the borrower/target part of a controlled group? If so, it is important to conduct the necessary due diligence to understand whether there are joint and several liabilities for which the entity may be responsible. "In circumstances that warrant it, the acquirer or lender should enter into negotiations with PBGC," said Jim Lukenda, CIRA, managing director, Huron Business Advisory. "This also requires expertise and an understanding of PBGC's objectives. PBGC is a focused and hardworking group, as well as very tough negotiators. However, it is possible to engage in meaningful discussions with the staff to reach reasonable economic resolution of issues when it is possible to do so." Huron Business Advisory has significant expertise and experience in multiple aspects of addressing issues that arise in distressed company transactions including those involving the resolution of pension plan issues, having represented buyers, sellers, and lenders. A copy of the full briefing is available at http://is.gd/4Rg4pr About Huron Business Advisory Huron Business Advisory resolves complex business issues and enhances value. The Company offers a full suite of services in key areas, including forensic investigations, transaction advisory, restructuring and turnaround, interim management, capital raising, operational improvement, and valuation. About Huron Consulting Group Huron Consulting Group -- http://www.huronconsultinggroup.com-- helps clients in diverse industries improve performance, transform the enterprise, reduce costs, leverage technology, process and review large amounts of complex data, address regulatory changes, recover from distress and stimulate growth. The Company's professionals employ their expertise in finance, operations, strategy and technology to provide its clients with specialized analyses and customized advice and solutions that are tailored to address each client's particular challenges and opportunities to deliver sustainable and measurable results. The Company provides consulting services to a wide variety of both financially sound and distressed organizations, including healthcare organizations, leading academic institutions, Fortune 500 companies, governmental entities and law firms. Huron has worked with more than 425 health systems, hospitals, and academic medical centers; more than 400 corporate general counsel; and more than 350 universities and research institutions. * U.S. Judge Rejects Argentina's Appeal for New Mediator -------------------------------------------------------- Alexandra Stevenson, writing for The New York Times' DealBook, reported that a lawyer for Argentina told a federal judge that the nation had lost faith in the mediator appointed to work with a group of hedge funds that hold the country's bonds after the mediator issued a statement saying the country was in "imminent default." That statement, according to the lawyer, Jonathan Blackman, was "harmful and prejudicial," and he asked that the mediator, David Pollack, be replaced. Judge Thomas P. Griesa of Federal District Court in Manhattan, however, rejected the request and said talks would have to continue. In a separate DealBook report, Peter Eavis said the repercussions of Argentina's sovereign debt default continued to spread through global markets as an industry body decided that financial instrument used to insure against the default must pay out. The report said the International Swaps and Derivatives Association said Argentina's failure to make a payment on its bonds would activate credit default swaps on the country's debt. In the coming days, investors who used the swaps to insure against the default will collect money from investors on the other side of the trade, the report said. * Jeffrey Manning Joins Reznick Capital as Managing Director ------------------------------------------------------------ Reznick Capital Markets Securities, LLC on July 24 announced the appointment of restructuring veteran Jeffrey R. Manning, CTP as a Managing Director. Mr. Manning will lead corporate recovery activities, primarily providing investment banking advice and services for companies operating at, near, or emerging from a restructuring process. Mr. Manning has more than 30 years of experience across the corporate recovery market, providing services to clients in such areas as investment banking, loan workouts, operating restructuring, value investing, bankruptcy advising, and loan trading. Global M&A Network's 2013 Annual Turnaround Atlas Awards recognized Mr. Manning as one of the top 100 restructuring and turnaround professionals from the global restructuring, distressed M&A, and insolvency communities. Prior to joining RCMS, Jeff was a managing director and group head of BDO Capital Advisors' special situations group, and prior to that position, he was CEO of FTI Capital Advisors, FTI's wholly- owned investment bank. "Jeff's appointment to the RCMS team gives us an additional array of skill sets to better serve our clients in a number of industries where there will likely be distress at some point in the future, including renewable and environmental companies," said Rob Sternthal, President of RCMS. Mr. Manning adds, "RCMS continues to expand its scope to serve companies facing ever greater regulatory and compliance hurdles in an economic environment that remains challenging." RCMS will team up, as needed, with accounting, tax, and advisory firm CohnReznick on those engagements where Mr. Manning's investment banking expertise can complement the Firm's restructuring advisory work. Mr. Manning will be based in Baltimore, expanding the RCMS footprint in the Mid-Atlantic Region. RCMS also maintains offices in New York, Chicago, and Los Angeles. About Reznick Capital Markets Securities Reznick Capital Markets Securities (RCMS) -- http://www.reznickcapitalmarkets.com-- offers a comprehensive financial advisory platform for the renewable energy industry. RCMS provides solutions for tax equity, equity, debt, asset sales or purchases. The company represents financial institutions, infrastructure funds, strategic participants (IPPs and utilities) and more than 60 wind, solar, biomass and other alternative energy developers nationwide. To date, Reznick Capital Markets Securities has led the financing of over 880MW in solar, wind and biomass projects and has placed tax equity financing for over $3 billion in assets. RCMS has successfully executed sale placements and asset sales for 130MW of solar and 90MW of wind projects. * BOND PRICING: For Week From July 28 to August 1, 2014 ------------------------------------------------------- Company Ticker Coupon Bid Price Maturity Date ------- ------ ------ --------- ------------- Alion Science & Technology Corp ALISCI 10.25 74.968 2/1/2015 Allen Systems Group Inc ALLSYS 10.5 49.75 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 38.125 10/15/2014 Buffalo Thunder Development Authority BUFLO 9.375 41.5 12/15/2014 Caesars Entertainment Operating Co Inc CZR 10 31 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.75 67.5 2/1/2016 Caesars Entertainment Operating Co Inc CZR 6.5 57 6/1/2016 Caesars Entertainment Operating Co Inc CZR 12.75 40 4/15/2018 Caesars Entertainment Operating Co Inc CZR 10 35.149 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.75 64.875 2/1/2016 Caesars Entertainment Operating Co Inc CZR 10 30.875 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10 33.125 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.75 64.875 2/1/2016 Caesars Entertainment Operating Co Inc CZR 10 30.875 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10 33.125 12/15/2018 Champion Enterprises Inc CHB 2.75 0.25 11/1/2037 Endeavour International Corp END 12 48.5 6/1/2018 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 0.99 1/30/2037 Energy Future Holdings Corp TXU 5.55 66.455 11/15/2014 FairPoint Communications Inc/Old FRP 13.125 1 4/2/2018 Global Geophysical Services Inc GGS 10.5 31 5/1/2017 Global Geophysical Services Inc GGS 10.5 32.75 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 6.375 6/1/2018 James River Coal Co JRCC 10 11 6/1/2018 James River Coal Co JRCC 3.125 1.875 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 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 29.25 12/1/2016 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 26.241 8/15/2016 NII Capital Corp NIHD 8.875 33 12/15/2019 NII Capital Corp NIHD 7.625 27.25 4/1/2021 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 75.764 12/15/2014 Savient Pharmaceuticals Inc SVNT 4.75 0.125 2/1/2018 TMST Inc THMR 8 13.1 5/15/2013 Terrestar Networks Inc TSTR 6.5 10 6/15/2014 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15 35 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.25 14.5 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.25 14.5 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15 38.75 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.5 15.125 11/1/2016 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.25 14.5 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.5 14.75 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 85.25 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, 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 ***