/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/140811.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 11, 2014, Vol. 18, No. 222 Headlines ALLY FINANCIAL: DBRS Assigns 'BB' Issuer Rating ALION SCIENCE: Amends Exchange Offer Prospectus AMERICAN AIRLINES: Bankruptcy Lawyers, Advisers See $375M Payday AMERICAN INT'L: Greenberg Faces January Trial in Spitzer Suit ANGLO IRISH: Suit Over Bank Overcharges Won't Be Heard in NY ARCH COAL: Bank Debt Trades at 3% Off ARCHDIOCESE OF MILWAUKEE: Ordered to Pay Attorney Fees ASARCO LLC: Baker Botts Takes $5.2M Defense Fees to High Court AXION INTERNATIONAL: Claude Brown Assumes CEO Role BERNARD L. MADOFF: Forfeiture Claims May Delay Aides' Sentencing BERRY PLASTICS: Closes Secondary Offering of 14.7MM Common Shares BIOLIFE SOLUTIONS: Stockholders Elected Five Directors BROADWAY FINANCIAL: Posts $59,000 Net Income in Second Quarter CAESARS ENTERTAINMENT: Files Complaint Against Certain Investors CAESARS ENTERTAINMENT: Bank Debt Due Jan. 2018 Trades at 8% Off CAESARS ENTERTAINMENT: Bank Debt Due March 2018 Trades at 3% Off CASTLE KEY: A.M. Best Affirms 'B-(fair)' Finc'l Strength Rating CESAR CHAVEZ ACADEMY: S&P Lowers 2012 Bond Rating to 'BB+' CIRCLE STAR: Auditors Doubt Going Concern Status CHINA TELETECH: To Buy 51% of Shenzhen Jinke's Assets COMMUNITY FIRST: Reports $379,000 Net Income in Second Quarter COMMUNITYONE BANCORP: Had $2 Billion Total Assets at June 30 CST BRANDS: Lehigh Gas Deal No Impact on Moody's 'Ba2' CFR DAUPHIN MEDIA: Files Bankruptcy in Toronto DETROIT, MI: Federal Court Asked to Suspend Bankruptcy Appeals DETROIT, MI: Pensioners Face Moment of Truth on Ch. 9 Appeals DETROIT, MI: Hold-Out Creditor Argues for Dismissal of Ch. 9 DETROIT, MI: Was Insolvent When Bankruptcy Filed, Auditor Says DTD PIZZA: Case Summary & 20 Largest Unsecured Creditors ELECTRONIC GAME: Securities Discovery Ban Hinges On Subpoena Date ENDEAVOUR INTERNATIONAL: Net Loss Increased to $37.1MM in Q2 EURAMAX HOLDINGS: Incurs $3.1 Million Net Loss in Second Quarter FAIR FINANCE: Convicted CFO Agrees To Pay $1.7M Back To Co. FANNIE MAE: Aug. 29 Deadline for Continental Western to Respond FANNIE MAE: Reports Net Income of $3.7 Billion in Second Quarter FIAT CHRYSLER: Sued over Jeep Ignition-Switch Failures FIRST AMERICAN PAYMENT: Moody's Affirms B2 Corp. Family Rating FIRST DATA: Incurs $34.5 Million Net Loss in Second Quarter FONTAINEBLEAU LAS VEGAS: Info on Ex-Principal's Worth Sought FREDDIE MAC: Aug. 29 Deadline for Continental Western to Respond GENERAL MOTORS: Judge Denies Motion to Dismiss Ignition Suit GENERAL MOTORS: 120 Claims Tied to Ignition-Switch Defect Filed GENERAL MOTORS: Judge Keeps Ignition Switch Case on Pause GESTION RER: Hydro Turbine Maker Must File Plan by Aug. 29 GETTY IMAGES: Bank Debt Trades at 4% Off GGW BRANDS: 'Girls Gone Wild' Founder Says Judge Can't Jail Him GLYECO INC: Signs Consulting Agreement with CTO GRD HOLDING: Moody's Lowers Rating on $360MM Sr. Notes to 'B2' GRIFFIN HOMEBUILDING: BofA Can't Bill Firm Owners For $60MM Award GUGGENHEIM PARTNERS: Faker Can't Toss $1.7M Award Through Ch. 7 HAMPTON ROADS: Reports $2.5 Million Net Income in Second Quarter HEARTLAND MEMORIAL: McGuireWoods Beats Suit Over Suspect LBO IOWA GAMING: Section 341(a) Meeting Rescheduled for Sept. 9 IOWA GAMING: Court Denies Iowa Racing's Case Dismissal Motion J&J SPOT HOLDING: Case Summary & Unsecured Creditor JACKSONVILLE BANCORP: Posts $507,000 Net Income in 2nd Quarter JAZZ PHARMACEUTICALS: S&P Rates $500MM Unsec. Notes Due 2021 'B+' JUPITER RESOURCES: Moody's Withdraws 'B3' Senior Unsecured Rating LEO MOTORS: Sells $961,540 of Convertible Promissory Notes LEVEL 3: Swings to $51-Million Net Income in Second Quarter LEVEL 3: TW Telecom Posts $36.4 Million Net Income in 2013 LONGVIEW POWER: Wants $825MM Policy Fight Kept In Bankruptcy LOT POLISH: EU Approves $260M Aid For Struggling Airline LPATH INC: Incurs $3.7 Million Net Loss in Second Quarter MACHINING PROGRAMMING: Case Summary & 9 Top Unsecured Creditors MCCLATCHY CO: Agrees to Sell 25.6% Stake in Cars.com to Gannett METRO AFFILIATES: Can't Duck Severance Claims MICHAEL BAKER: Moody's Assigns 'B2' Corporate Family Rating MOLYCORP INC: Incurs $84 Million Net Loss in Second Quarter MOMENTIVE PERFORMANCE: Can't Use Plan to Dodge Taxes, Feds Say MORGANS HOTEL: Incurs $13.7 Million Net Loss in Second Quarter MSR RESORT: Court Rules on Dispute With Conlon Group Arizona N-VIRO INTERNATIONAL: Incurs $440,000 Net Loss in First Quarter NATROL INC: Gets Nod for Cerberus Settlement NEONODE INC: Incurs $3.9 Million Net Loss in Second Quarter NEW WORLD RESOURCES: Sept. 9 Hearing on Chapter 15 Recognition NY SATELLITE INDUSTRIES: 4th Cir. Rejects Owner's Appeal ONE2ONE COMMUNICATIONS: Quad/Graphics Can't File Avoidance Suits OVERSEAS SHIPHOLDING: Net Loss Widens to $204,111,000 in Q2 OVERSEAS SHIPHOLDING: Caxton Int'l Acquires 12.61% Equity Stake PANAMA CITY: Goes After Attys for Bungled Foreclosure Defense PARK INSURANCE: A.M. Best Withdraws 'ccc' Issuer Credit Rating PLATFORM SPECIALTY: Agriphar Deal No Impact on Moody's B1 Rating PLANT INSULATION: Reorg Plan Flouts 9th Circ., Insurers Say PLY GEM: Posts $11.4 Million Net Income in Second Quarter PORTER BANCORP: Incurs $672,000 Net Loss in Second Quarter PRESTIGE BRANDS: Moody's Lowers Corporate Family Rating to 'B2' PRESTIGE BRANDS: S&P Affirms B+ CCR; Removed From Watch Negative PRINCE PREFERRED HOTELS: 3rd Amended Plan Confirmed PROXYMED INC: Suit Alleging Shareholder Caused Bankruptcy Is Cut PUERTO RICO: Municipal Bankruptcy Proposed in U.S. House Bill QUALITY DISTRIBUTION: Swings to $11.4 Million Net Income in Q2 QUANTUM CORP: Swings to $4.3 Million Net Loss in June 30 Quarter QUANTUM FUEL: Net Loss Down to $2.2 Million in Second Quarter QVC INC: Fitch Retains 'BB' Issuer Default Rating QVC INC: Moody's Affirms Ba3 CFR & Rates Sr. Secured Notes Ba2 QVC INC: S&P Affirms 'BB' Corporate Credit Rating RELIANCE INSURANCE: Sept. 19 Deadline to Respond to Bar Date Bid RESPONSE BIOMEDICAL: SVP World Wide Sales and Marketing Quits ROME FINANCE: Soldiers' Consumer Debt Cleared In Shutdown SAN BERNARDINO, CA: Judge Accuses Fire Union of "Stonewalling" SANMINA CORP: Fitch Raises IDR to 'BB' & Rates 2019 Notes 'BB+' SANUWAVE HEALTH: Widens Loss to $1.7 Million in Second Quarter SEANERGY MARITIME: Incurs $759,000 Net Loss in Second Quarter SEETARAM LLC: Case Summary & 12 Unsecured Creditors SHIMOJI FAMILY: Case Summary & 4 Largest Unsecured Creditors SINCLAIR BROADCAST: Files Form 10-Q, Reports $41.6MM Income in Q2 SPRINGLEAF FINANCE: Fitch Raises LT Issuer Default Rating to 'B' SPRINGLEAF HOLDINGS: Moody's Puts B3 CFR on Review for Upgrade SUN BANCORP: Files Form 10-Q Reporting $24.2 Million Q2 Loss SUNTECH POWER: Acting Chief Financial Officer Departs TERRAFORM POWER: S&P Assigns 'BB-' CCR & Rates $300MM Loan 'BB' THERAPEUTICSMD INC: Incurs $10.9 Million Net Loss in 2nd Quarter TMT GROUP: CEO Casts $100M IP Suit Over Vessel Sale TJ MCGLONE: Withholding Taxes Can't Be Dumped In Bankruptcy TRANSGENOMIC INC: Incurs $4.2 Million Net Loss in Second Quarter TRAVELPORT LIMITED: Reports $4MM Net Income in Second Quarter UNIVERSAL HEALTH: S&P Keeps BB+ Rating on Amended Credit Facility US SHALE SOLUTIONS: S&P Assigns 'CCC+' Corp. Credit Rating USEC INC: Files Form T-3; To Issue 2019/2024 PIK Notes Under Plan VERITEQ CORP: Issues Convertible Promissory Notes VERTIS HOLDINGS: Cash Collateral Use Approved VEYANCE TECHNOLOGIES: S&P Retains 'B' CCR on CreditWatch Positive WALTER ENERGY: Widens Q2 Loss to $151MM, May File for Bankruptcy WALTER ENERGY: Bank Debt Trades at 6% Off WARNER MUSIC: Incurs $184 Million Net Loss in Third Quarter WASHINGTON MUTUAL: Chase Beats Rocker Rundgren's Mortgage Suit WAVE SYSTEMS: Reports Q2 Net Revenues of $4.4 Million WESTMORELAND COAL: Announces Monetization of Port Agreement XZERES CORP: KLJ & Associates Is New Accountant YRC WORLDWIDE: Marc Lasry Reports 23.3% Equity Stake WORLDCOM INC: IRS Says High Court Should Skip 'Obsolete' Case ZOGENIX INC: Files Form 10-Q, Posts $62.8MM Net Income in Q2 ZOGENIX INC: To Issue 2.7 Million Common Shares Under Plan * Barclays Seeks Dismissal of New York Dark Pool Lawsuit * BofA Ordered to Pay $1.27 Billion Over Mortgage Fraud * BofA Deal Hung Up Over Penalties Tied to Countrywide, Merrill * Dollar General Said to Explore Family Dollar Bid * MoneyPak Opens Path to Fraud Schemes * Royal Bank of Scotland To Revamp Restructuring Unit Amid Probe * UAW Sued for Treating Plant Workers Unequally * Judge Threatens Argentina With Contempt * Banks Face Hit from CFPB on $30 Billion in Overdraft Fees * CFTC Says Flexibility Vital to Oversee Cross-Border Swaps * Ending Too Big to Fail Could Rest on Obscure Contract Language * Lew Can Use Tax Rule to Slow Inversions, Ex-Official Says * Lloyds Bank to Pay $380MM+ Over Rate Manipulation Inquiries * New Legislation Targets Inversions from Different Angle * BOND PRICING -- For Week From Aug. 4 to 8, 2014 ********* ALLY FINANCIAL: DBRS Assigns 'BB' Issuer Rating ----------------------------------------------- DBRS Inc. considers Ally Financial Inc.'s 2Q14 results as demonstrating the strength of the Company's dealer-centric franchise in a highly competitive marketplace. For the quarter, Ally originated $10.9 billion of retail auto loans and leases, up 18% quarter-on-quarter (QoQ) and outpacing its peers. Importantly, origination volumes grew across all channels, including the highest used vehicle originations in Company history. Non-GM and non-Chrysler originations were up 48% year- on-year (YoY), accounting for 20% of total consumer originations. DBRS views this as demonstrating the Company's success in broadening its dealer channel and focus on diversifying its origination mix. For 2Q14, Ally reported underlying pre-tax income (excluding original issue discount (OID) and repositioning items) of $417 million, up 23% from the prior quarter. Good expansion in net financing revenue, sound credit performance and the continuing management focus on operating costs were the primary drivers of the improved results. Net financing revenue, excluding OID, increased QoQ to $912 million, reflecting a slight increase in automotive earning assets as well as expanding net interest margin (NIM). Excluding OID, NIM improved 10 basis points from the prior quarter to 2.63%. Lower funding costs reflecting continuing growth in lower cost retail deposits and the redemption of $10 billion in legacy high-cost debt benefited margins. Meanwhile, the strong used vehicle market supported lease remarketing gains resulting in an improving asset yield. However, going forward, Ally expects some moderation in used vehicle values, which would translate into lower asset yields and, subsequently, potentially lower NIM. Credit performance remains strong supported by lower loss severities due to favorable used vehicle values and investments made by Ally in its servicing operations. Net charge-offs were lower QoQ while delinquencies increased QoQ reflecting normal seasonal patterns. As a result, the provision for loan losses was 54% lower QoQ at $63 million. Excluding repositioning items, adjusted non-interest expense was 13% higher QoQ at $805 million. Driving the sequential increase was severe hail storms in the Midwest during the quarter that resulted in weather-related losses in the Insurance segment which far exceeded those incurred over prior second quarters. Positively, compensation and benefits expense was 15% lower on reduced corporate headcount, reflecting management's continued focus on streamlining the cost base as well as a revaluation of the Company's equity compensation. As a result, the Company's adjusted efficiency ratio was 49% in 2Q14 compared to 55% in 1Q14. DBRS rates Ally's Issuer and Long-Term Debt at BB with a Stable trend. ALION SCIENCE: Amends Exchange Offer Prospectus ----------------------------------------------- Alion Science and Technology Corporation amended its registration statement on Form S-1 relating to the Company's exchange offer, unit offering and consent solicitation. The Company has an offer to exchange all of its Outstanding $235,000,000 10.25% Senior Notes due 2015 and the Related Guarantees for an aggregate of: up to $235,000,000 of its Third- Lien Senior Secured Notes due 2020 and the Related Guarantees and up to $20,000,400 in Cash and the Solicitation of Consents. The Company is also offering up to 8,633 Units consisting of an aggregate of up to $8,633,000 of its Third-Lien Senior Secured Notes due 2020 and the Related Guarantees Available to holders of Old Notes. 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, unless extended by it, 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. A full-text copy of the amended prospectus is available at: http://is.gd/C56AjN 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. AMERICAN AIRLINES: Bankruptcy Lawyers, Advisers See $375M Payday ---------------------------------------------------------------- Law360 reported that lawyers, advisers and other professional services firms who worked on the bankruptcy case of former American Airlines parent AMR Corp. scored $375 million in fee awards with Weil Gotshal & Manges LLP leading the way with $74.5 million and then Debevoise & Plimpton LLP with $53.7 million. According to the report, U.S. Bankruptcy Judge Sean H. Lane approved $375.19 million in fees and $16.44 million in expenses to 53 law and financial advisory firms that worked on AMR's Chapter 11 case from its inception in November 2011 through emergence. About American Airlines AMR Corp. and its subsidiaries including American Airlines filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost- cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so- called U.S. legacy airlines to seek court protection from creditors. It was the third largest airline in the United States at the time of the bankruptcy filing. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. The Retiree Committee is represented by Jenner & Block LLP's Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B. Hankin, Esq. AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The bankruptcy judge on Sept. 12, 2013, confirmed AMR Corp.'s plan to exit bankruptcy through a merger with US Airways. By distributing stock in the merged airlines, the plan is designed to pay all creditors in full, with interest. Judge Sean Lane confirmed the Plan despite the lawsuit filed by the U.S. Department of Justice and several states' attorney general complaining that the merger violates antitrust laws. In November 2013, AMR and the U.S. Justice Department a settlement of the anti-trust suit. The settlements require the airlines to shed 104 slots at Reagan National Airport in Washington and 34 at LaGuardia Airport in New York. AMR stepped out of Chapter 11 protection after its $17 billion merger with US Airways was formally completed on Dec. 9, 2013. AMERICAN INT'L: Greenberg Faces January Trial in Spitzer Suit ------------------------------------------------------------- Chris Dolmetsch, writing for Bloomberg News, reported that Maurice "Hank" Greenberg, the former chairman of American International Group Inc., will go on trial in January after more than nine years of legal jousting over former New York Attorney General Eliot Spitzer's lawsuit accusing him of fraud. According to the report, the state claims Greenberg, 89, and former AIG Chief Financial Officer Howard Smith bear responsibility for allegedly sham transactions with General Reinsurance Corp. in 2000 and 2001 that inflated AIG's loss reserves by $500 million. The case is State of New York v. Greenberg, 401720-2005, New York State Supreme Court, New York County (Manhattan). ANGLO IRISH: Suit Over Bank Overcharges Won't Be Heard in NY ------------------------------------------------------------ Law360 reported that a New York federal judge tossed a racketeering suit launched by Irish property developer John Flynn and his family alleging Ireland's National Asset Management Agency covered up loan overcharges made by the bankrupt Anglo Irish Bank, saying the suit belongs in Ireland. According to the report, U.S. District Judge Lewis A. Kaplan dismissed on the ground of forum non conveniens the Racketeer Influenced and Corrupt Organizations Act suit launched by members of the Flynn family and their associated entities. The case is Flynn et al v. National Asset Management Agency et al., Case No. 1:13-cv-09035 (S.D.N.Y.). About Anglo Irish Anglo Irish Bank was an Irish bank headquartered in Dublin from 1964 to 2011. It went into wind-down mode after nationalization in 2009. In July 2011, Anglo Irish merged with the Irish Nationwide Building Society, with the new company being named the Irish Bank Resolution Corporation (IBRC). Standard & Poor's Ratings Services said that it lowered its long- and short-term counterparty credit ratings on Irish Bank Resolution Corp. Ltd. (IBRC) to 'D/D' from 'B-/C'. S&P also lowered the senior unsecured ratings to 'D' from 'B-'. S&P then withdrew the counterparty credit ratings, the senior unsecured ratings, and the preferred stock ratings on IBRC. At the same time, S&P affirmed its 'BBB+' issue rating on three government- guaranteed debt issues. The rating actions follow the Feb. 6, 2013, announcement that the Irish government has liquidated IBRC. The former Irish bank sought protection from creditors under Chapter 15 of the U.S. Bankruptcy Code on Aug. 26, 2013 (Bankr. D. Del., Case No. 13-12159). The former bank's Foreign Representatives are Kieran Wallace and Eamonn Richardson. Its U.S. bankruptcy counsel are Mark D. Collins, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware. ARCH COAL: Bank Debt Trades at 3% Off ------------------------------------- Participations in a syndicated loan under which Arch Coal Inc. is a borrower traded in the secondary market at 97.33 cents-on-the- dollar during the week ended Friday, August 8, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.76 percentage points from the previous week, The Journal relates. Arch Coal Inc. pays 500 basis points above LIBOR to borrow under the facility. The bank loan matures on May 17, 2018, and carries Moody's B1 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 205 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. ARCHDIOCESE OF MILWAUKEE: Ordered to Pay Attorney Fees ------------------------------------------------------ Bruce Vielmetti, writing for Milwaukee-Wisconsin Journal Sentinel, reported that a judge ordered the Archdiocese of Milwaukee to come up with $1.35 million to pay lawyers involved in its ongoing bankruptcy case, at least a portion of the many more millions they're owed. According to the report, the lawyers and other professionals involved haven't been paid since the archdiocese won a suspension of payments more than a year ago, saying it barely had enough money to continue operations. U.S. Bankruptcy Judge Susan V. Kelley also granted the archdiocese's request to return the case to mediation for a possible consensual resolution to the long, complex and fractious proceeding. About Archdiocese of Milwaukee The Diocese of Milwaukee was established on Nov. 28, 1843, and was elevated to an Archdiocese on Feb. 12, 1875, by Pope Pius IX. The region served by the Archdiocese consists of 4,758 square miles in southeast Wisconsin which includes counties Dodge, Fond du Lac, Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth, Washington and Waukesha. There are 657,519 registered Catholics in the Region. The Catholic Archdiocese of Milwaukee, in Wisconsin, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wis. Case No. 11-20059) on Jan. 4, 2011, to address claims over sexual abuse by priests on minors. The Archdiocese became at least the eighth Roman Catholic diocese in the U.S. to file for bankruptcy to settle claims from current and former parishioners who say they were sexually molested by priests. Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in Milwaukee, Wisconsin, serves as the Archdiocese's counsel. The Official Committee of Unsecured Creditors in the bankruptcy case has retained Pachulski Stang Ziehl & Jones LLP as its counsel, and Howard, Solochek & Weber, S.C., as its local counsel. The Archdiocese estimated assets and debts of $10 million to $50 million in its Chapter 11 petition. ASARCO LLC: Baker Botts Takes $5.2M Defense Fees to High Court -------------------------------------------------------------- Law360 reported that Baker Botts LLP and co-counsel have asked the U.S. Supreme Court to reinstate a $5.2 million award for defending their fees relating to Asarco LLC's successful bankruptcy reorganization, saying federal law allows bankruptcy judges discretion in granting such compensation. According to the report, if the high court takes up the case, Baker Botts and Jordan Hyden Womble Culbreth & Holzer PC would seek to overturn a ruling by the Fifth Circuit, which denied the award in April, concluding that a bankruptcy court abused its discretion by awarding the money and in doing so reversed a lower court ruling. The case is Baker Botts LLP et al. v. Asarco LLC, case number 14- 103, in the Supreme Court of the United States. About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection (Bankr. S.D. Tex. Case No. 05-21207) on Aug. 9, 2005. Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On Dec. 9, 2009, Asarco Incorporated and Americas Mining Corporation's Seventh Amended Plan of Reorganization for the Debtors became effective and the ASARCO Asbestos Personal Injury Settlement Trust was created and funded with nearly $1 billion in assets, including more than $650 million in cash plus a $280 million secured note from Reorganized ASARCO. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated ASARCO LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. AXION INTERNATIONAL: Claude Brown Assumes CEO Role -------------------------------------------------- AXION International Holdings, Inc., announced a move to increase production of ECOTRAX(R) and STRUXURE(R) products to meet growing demand, and realign the Company's operational and management team to better focus on its core activities, definitive strategy and drive long-term growth. AXION has announced that it will immediately begin converting extrusion equipment in its Zanesville, OH facility now used for reprocessing plastic waste so that such equipment can be used to produce engineered products such as rail ties and industrial mats. The Zanesville facility will continue to sort, grind, and wash post-consumer and post-industrial plastics and plastic composites, though the output will now be primarily for AXION's proprietary engineered products. The realignment will require modifications and upgrades to existing equipment and the addition of mat fabrication capability to support the production of the Company's engineered products. The execution of the strategy to vertically integrate reprocessing with product manufacturing is now being accelerated to enable AXION to increase its manufacturing capacity and earn a higher gross margin on its product sales. AXION will remain a significant and increasing purchaser of recycled plastic waste and continue its marketing and manufacturing of customized reprocessed plastics from which higher gross margins can be realized. AXION's Steve Silverman, who has served as AXION's chief executive officer since January, 2011 said, "This is an exciting time for the Company as we planned for this realignment to take place in early 2015. Given the prospect that demand can overwhelm us as our orders and pipeline continue to grow, we decided we needed to move forward now. Our Waco, TX facility is producing finished product and nearing full capacity for the assets we have in place and we are currently finalizing multiple supply agreements around the world. The test projects our rail customers previously initiated are now leading to new orders that will be quite significant for our business and we must increase our capacity to support such demand. Market demand for both our heavy construction mat and laminated temporary road mat is increasing, and it is necessary to have adequate inventory when a customer calls in an order. Our decision to realign this facility to build this inventory is based on the prospects we foresee in the market with our products." Mr. Silverman continues, "We have built a great foundation of vertically integrating our material stream. We have come so far in just 4 years. We now have demand for our products at higher price per pound realizations and we have two manufacturing facilities. As part of this evolutionary process, we required a CEO with the experience to lead a plastic-based manufacturing operation. There is no better person for this position than Claude." AXION also announced changes to its Board of Directors and its senior management team to more effectively support an engineered products manufacturing business. Samuel Rose, one of AXION's principal investors, was appointed to its Board of Directors, effective Aug. 4, 2014. In addition, Claude Brown Jr., previously the Company's chief operating and technology officer has been promoted to chief executive officer, while Steve Silverman, will assume the role of the Company's vice chairman of the Board. Mr. Brown is a respected industry veteran with over 22 years of experience in engineering, development, commercialization and production of unique polymer technologies and differentiated building products. On and effective as of Aug. 4, 2014, Steven Silverman resigned as the president and chief executive officer of Axion International. "It is my pleasure to assume the post of Chief Executive Officer of AXION," says Mr. Brown, "I fully endorse the acceleration of the execution of our strategy and am excited for the prospects we foresee for the specialized and proprietary engineered products that AXION is now manufacturing." About Axion International New Providence, N.J.-based Axion International Holdings, Inc. (OTC BB: AXIH) - http://www.axionintl.com/-- is the exclusive licensee of patented and patent-pending technologies developed for the production of structural plastic products such as railroad crossties, pilings, I-beams, T-Beams, and various size boards including a tongue and groove design that are utilized in multiple engineered design solutions such as rail track, rail and tank bridges (heavy load), pedestrian/park and recreation bridges, marinas, boardwalks and bulk heading to name a few. AXION International reported a net loss of $24.19 million on $6.63 million of revenue in 2013, compared to a net loss of $5.43 million on $5.34 million of revenue in 2012. As of March 31, 2014, the Company had $16.53 million in total assets, $34.37 million in total liabilities, $6.94 million in 10% convertible preferred stock and a $24.78 million total stockholders' deficit. Following the 2013 results, BDO USA, LLP, expressed substantial doubt about the Company's ability to continue as a going concern, stating that the Company has suffered recurring losses from operations and has working capital and net capital deficiencies. BDO USA, LLP also issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. BERNARD L. MADOFF: Forfeiture Claims May Delay Aides' Sentencing ---------------------------------------------------------------- Law360 reported that the sentencing of five former Bernard L. Madoff Investment Securities LLC employees convicted of aiding the Ponzi scheme could be delayed yet again as defense attorneys dispute the government's $150 billion forfeiture claim, a New York federal judge said. According to the report, Judge Laura Taylor Swain said during a Manhattan court hearing that sentencing hearings for the defendants may be delayed for a third time. Initially scheduled for July 28-30, the hearings were pushed back to Sept. 15-17, and then again to Sept. 29-Oct. 1, amid an avalanche of court filings. The case is USA v. O'Hara et al., Case No. 1:10-cr-00228 (S.D.N.Y.). About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has paid about 58 percent of customer claims totaling $17.3 billion. The most recent distribution was in March 2013. Mr. Picard has collected about $9.35 billion, not including an additional $2.2 billion that was forfeit to the government and likewise will go to customers. Picard is holding almost $4.4 billion he can't distribute on account of outstanding appeals and disputes. The largest holdback, almost $2.8 billion, results from disputed claims. BERRY PLASTICS: Closes Secondary Offering of 14.7MM Common Shares ----------------------------------------------------------------- Berry Plastics Group, Inc., completed a secondary offering of 14,728,218 shares of common stock by investment funds affiliated with or managed by Apollo Global Management, LLC. The Company did not receive any of the proceeds from the Offering. The Offering was made pursuant to the Company's shelf registration statement on Form S-3 (File No. 333-194030), filed with the Securities and Exchange Commission on Feb. 19, 2014, as amended on May 5, 2014, and related prospectus supplement dated Aug. 4, 2014. In connection with the Offering, the Company entered into an Underwriting Agreement, dated Aug. 4, 2014, by and among the Company, Apollo Investment Fund V, L.P., Apollo Investment Fund VI, L.P., Covalence Co-Investment Holdings LLC, Apollo V Covalence Holdings, L.P., AP Berry Holdings L.P., BPC Co-Investment Holdings LLC, and Citigroup Global Markets Inc. as underwriter. 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 of June 28, 2014, 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. * * * 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. BIOLIFE SOLUTIONS: Stockholders Elected Five Directors ------------------------------------------------------ BioLife Solutions, Inc., held its 2014 annual meeting of stockholders on Aug. 6, 2014, at its principal executive office in Bothell, Washington. At the Annual Meeting, the Company's stockholders elected Michael Rice, Raymond Cohen, Andrew Hinson, Joseph Schick, and Rick Stewart as directors to hold office until the 2015 Annual Meeting. The Company's stockholders also ratified the appointment of Peterson Sullivan LLP as the Company's independent registered public accounting firm for 2014. About BioLife Solutions Bothell, Washington-based BioLife Solutions, Inc., develops and markets patented hypothermic storage and cryo-preservation solutions for cells, tissues, and organs, and provides contracted research and development and consulting services related to optimization of biopreservation processes and protocols. BioLife Solutions incurred a net loss of $1.08 million in 2013, a net loss of $1.65 million in 2012, and a net loss of $1.95 million in 2011. The Company's balance sheet at March 31, 2014, showed $15.98 million in total assets, $1.90 million in total liabilities and $14.07 million in total shareholders' equity. BROADWAY FINANCIAL: Posts $59,000 Net Income in Second Quarter -------------------------------------------------------------- Broadway Financial reported net income of $59,000 on $3.87 million of interest income for the three months ended June 30, 2014, as compared with a net loss of $228,000 on $4.06 million of interest income for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income of $1.04 million on $7.67 million of interest income as compared with a net loss of $844,000 on $8.08 million of interest income for the same period last year. Chief Executive Officer, Wayne Bradshaw stated, "During the second quarter we continued our strategy of becoming the leader in financing affordable housing in low-to-moderate income communities throughout Southern California. We significantly increased our loan originations from a year ago and believe that the combination of our strong capital base and ability to lend to experienced owners of smaller multi-family residential properties will allow Broadway to resume its historical leadership in serving low-to- moderate income communities." Mr. Bradshaw further stated that, "As of June 30, 2014, we increased the Bank's Tier 1 Capital Ratio to 10.67% and its Total Risk-Based Capital ratio to 17.00%. Also, we are moving forward with our plans to raise additional common equity so that we can implement the extension of the maturity of our subordinated debentures that was negotiated during the first quarter." Total assets increased by $2.2 million to $334.7 million at June 30, 2014, from $332.5 million at Dec. 31, 2013, primarily due to an increase in securities available-for-sale and gross loans receivable, partially offset by a decrease in cash and cash equivalents. A full-text copy of the press release is available at: http://is.gd/Ml5i85 About Broadway Financial Los Angeles, Calif.-based Broadway Financial Corporation was incorporated under Delaware law in 1995 for the purpose of acquiring and holding all of the outstanding capital stock of Broadway Federal Savings and Loan Association as part of the Bank's conversion from a federally chartered mutual savings association to a federally chartered stock savings bank. In connection with the conversion, the Bank's name was changed to Broadway Federal Bank, f.s.b. The conversion was completed, and the Bank became a wholly owned subsidiary of the Company, in January 1996. The Company is regulated by the Board of Governors of the Federal Reserve System. The Bank is regulated by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. Broadway Financial reported a loss allocable to common stockholders of $1.08 million in 2013, a loss allocable to common stockholders of $693,000 in 2012 and a net loss available to common shareholders of $15.36 million in 2011. The Company's balance sheet at March 31, 2014, the Company had $335.07 million in total assets, $308.51 million in total liabilities and $26.56 million in total stockholders' equity. CAESARS ENTERTAINMENT: Files Complaint Against Certain Investors ---------------------------------------------------------------- Caesars Entertainment Corporation and its subsidiary, Caesars Entertainment Operating Company, Inc., filed suit in the Supreme Court of New York, New York County, against certain institutional investors who they believe have sought to injure them by attempting to thwart CEOC's restructuring efforts through actions apparently designed to push CEOC into default. The complaint states that Caesars and CEOC believe some creditors are motivated to act against the best interest of the enterprise and other creditors to inflate the value of credit default swap positions or improve other unique securities positions. The complaint names certain institutional investors who hold second-lien notes issued by CEOC, along with Elliott Management Corporation, which holds first-lien notes. Caesars and CEOC believe Elliott holds a significant CDS position. The complaint alleges that second-lien holders served CEOC with a baseless notice of default. The complaint seeks declaratory and injunctive relief to prevent further damage to Caesars and CEOC. The complaint also seeks damages from the defendants. "We refuse to be held hostage by speculators who appear to be betting against the long-term health of our enterprise as well as our more than 60,000 employees and the communities in which we operate," said Gary Loveman, chairman and chief executive officer of Caesars and Chairman of CEOC. "Since the beginning of the financial crisis, we have worked collaboratively and constructively with debtholders in an effort to improve CEOC's financial condition while investing in the business and taking steps to enhance operating performance. Caesars and its family of companies have completed more than 50 capital markets transactions to improve CEOC's financial condition. Neither Caesars nor CEOC have ever missed an interest or principal payment despite the extremely challenging environment. The meritless actions taken by the defendants impede our ability to conduct rational negotiations with holders to further improve CEOC's financial condition." The complaint alleges that defendants' actions have included demand letters, disruptive appearances before gaming regulators and the transmission by second lien holders of what Caesars and CEOC believe is a baseless default notice. They now are seeking judicial action to lay these claims to rest. Caesars and CEOC will continue to engage in constructive discussions with creditors. On Aug. 4, 2014, Wilmington Savings Fund Society, FSB, solely in its capacity as successor Indenture Trustee for the 10% Second- Priority Senior Secured Notes due 2018, on behalf of itself and, it alleges, derivatively on behalf of Caesars Entertainment Operating Company, Inc., filed a lawsuit in the Court of Chancery in the State of Delaware against Caesars Entertainment Corporation and CEOC, Caesars Growth Partners, LLC, Caesars Acquisition Company, Caesars Entertainment Resort Properties, LLC, Caesars Enterprise Services, LLC, Eric Hession, Gary Loveman, Jeffrey D. Benjamin, David Bonderman, Kelvin L. Davis, Marc C. Rowan, David B. Sambur, and Eric Press. The lawsuit alleges claims for breach of contract, intentional and constructive fraudulent transfer, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, and corporate waste. The lawsuit seeks: (1) an award of money damages; (2) to void certain transfers, the earliest of which dates back to 2010; (3) an injunction directing the recipients of the assets in these transactions to return them to CEOC; (4) a declaration that the Company remains liable under the parent guarantee formerly applicable to the Notes; (5) to impose a constructive trust or equitable lien on the transferred assets; and (6) an award to plaintiffs for their attorneys' fees and costs. The Company believes this lawsuit is without merit and will defend itself vigorously. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. -- http://www.caesars.com/-- is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. Caesars Entertainment reported a net loss of $2.93 billion in 2013, as compared with a net loss of $1.50 billion in 2012. The Company's balance sheet at March 31, 2014, showed $24.37 billion in total assets, $26.65 billion in total liabilities and a $2.27 billion total deficit. * * * As reported by the TCR on April 9, 2013, Moody's Investors Service downgraded Caesars Entertainment Corporation's Corporate Family Rating to Caa2. "The downgrade of Caesars' ratings considers that its same store EBITDA growth in 2012-2013 has failed to materialize to any significant degree, and so Caesars' credit metrics have deteriorated and its free cash flow deficit will be higher than Moody's previous expectations," stated Moody's analyst Peggy Holloway. In the April 10, 2014, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit ratings on Las Vegas-based Caesars Entertainment Corp. (CEC) and wholly owned subsidiaries, Caesars Entertainment Operating Co. (CEOC) and Caesars Entertainment Resort Properties (CERP), as well as the indirectly majority-owned Chester Downs and Marina, to 'CCC-' from 'CCC+'. The downgrade reflects S&P's expectation that Caesars' capital structure is unsustainable, and the amount of cash the company will burn in 2014 and 2015 creates conditions under which S&P believes a restructuring of some form is increasingly likely over the near term absent an unanticipated significantly favorable change in operating performance. As reported by the TCR on May 1, 2014, Fitch Ratings has downgraded the Issuer Default Ratings (IDRs) of Caesars Entertainment Corp (CEC) and Caesars Entertainment Operating Company (CEOC) to 'CC' from 'CCC'. CAESARS ENTERTAINMENT: Bank Debt Due Jan. 2018 Trades at 8% Off --------------------------------------------------------------- Participations in a syndicated loan under which Caesars Entertainment Inc. is a borrower traded in the secondary market at 92.39 cents-on-the-dollar during the week ended Friday, Aug. 8, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.84 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. CAESARS ENTERTAINMENT: Bank Debt Due March 2018 Trades at 3% Off ---------------------------------------------------------------- Participations in a syndicated loan under which Caesars Entertainment Inc. is a borrower traded in the secondary market at 97.46 cents-on-the-dollar during the week ended Friday, Aug. 8, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.75 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 March 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. CASTLE KEY: A.M. Best Affirms 'B-(fair)' Finc'l Strength Rating --------------------------------------------------------------- A.M. Best Co. has affirmed the financial strength rating (FSR) of B- (Fair) and the issuer credit ratings (ICR) of "bb-" of the members of Castle Key Group (headquartered in St. Petersburg, FL). The outlook for all ratings is negative. The ratings and outlook reflect Castle Key's poor overall capitalization when measured on a catastrophe stress-tested basis and geographic business concentration resulting in a susceptibility to catastrophic loss accumulation. Castle Key is the dedicated Florida property writer for its parent company, Allstate Insurance Company (Allstate), and it maintains significant exposure to hurricanes, with a corresponding substantial reliance on catastrophe reinsurance. In addition, Castle Key's reinsurance program relies heavily upon the Florida Hurricane Catastrophe Fund (FHCF). These negative rating factors are partially offset by Castle Key's recently improved operating performance, which has been positively impacted by favorable loss activity due to increased rates and an absence of any hurricane events. A.M. Best deviated from its "Rating Members of Insurance Groups" rating criteria by providing more than two FSR levels of rating enhancement to Castle Key's stand-alone assessment. However, the additional rating enhancement acknowledges the historical financial and operational support provided to Castle Key as part of the Allstate organization. Although Castle Key is separately capitalized and not reinsured by Allstate, in A.M. Best's opinion, parental support regarding the claims-paying ability of Castle Key will be maintained commensurate with its rating level in the event of frequent and/or severe hurricane activity. If parental support is not provided, it would be necessary for A.M. Best to re-evaluate the current FSR of A+ (Superior) and ICRs of "aa-" of Allstate and all the remaining members of the Allstate Insurance Group. Future positive rating actions may result if Castle Key maintains favorable underwriting trends along with capital accumulation. However, negative rating actions could result if parental support is not provided in the case of multiple significant events. The FSR of B- (Fair) and ICRs of "bb-" have been affirmed for the following members of the Castle Key Group: -- Castle Key Insurance Company -- Castle Key Indemnity Company -- Encompass Floridian Insurance Company -- Encompass Floridian Indemnity Company CESAR CHAVEZ ACADEMY: S&P Lowers 2012 Bond Rating to 'BB+' ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term rating to 'BB+' from 'BBB-' on the Michigan Finance Authority's series 2012 limited obligation revenue refunding bonds issued on behalf of Cesar Chavez Academy (CCA). The outlook is negative. "The downgrade and negative outlook reflect our view of CCA's approximately $1 million operating deficit in fiscal 2014," said Standard & Poor's credit analyst Ashley Ramchandani, "which we anticipate will result in a technical default with lease-adjusted maximum annual debt service (MADS) coverage of 0x and a budgeted operating deficit in fiscal 2015." While the academy has maintained a relatively stable demand and enrollment profile, its recent expansion adding a new campus in East Detroit has weakened operations; once it adjusts for one-time expenses associated with the expansion, operations are balanced, producing a lease-adjusted MADS coverage of 0.5x, violating the academy's 1.0x MADS coverage covenant. "It is our opinion that the academy will not return to historical operating levels in the near term and we anticipate further deterioration to cash," added Ms. Ramchandani. "The 'BB+' rating and negative outlook also reflect our view of the academy's anticipated operating deficit of $1 million in fiscal 2014 and weak demographics due to its location in Detroit," she added. The negative outlook reflects S&P's expectation that during the two-year outlook period, CCA will experience a $1 million operating deficit in fiscal 2014 due to costs associated with its expansion and negative operations in fiscal 2015. S&P anticipates that cash levels will continue to deteriorate. "Further negative rating action is possible if enrollment fails to meet projections such that the academy experiences significantly weaker operating performance than its planned $40,000 deficit on a zash basis for fiscal 2015," said Ms. Ramchandani. S&P do not anticipate a positive rating action during the two-year outlook period given the academy's anticipated operating deficit in fiscal years 2014 and 2015 and its extremely weak lease-adjusted MADS coverage. CIRCLE STAR: Auditors Doubt Going Concern Status ------------------------------------------------ D'Arelli Pruzansky, P.A., in Boca Raton, Florida, raised concerns about Circle Star Energy Corp.'s ability to continue as a going concern in their report on the consolidated financial statements for the year ended April 30, 2014. The independent auditors noted that the Company has net losses and an accumulated deficit and stockholders' deficit of $23,091,306 and $2,301,989, respectively, and a working capital deficit of $3,648,330 at April 30, 2014. Circle Star incurred a net loss of $1.03 million on $958,342 of total revenues for the year ended April 30, 2014, as compared with a net loss of $10.81 million on $812,762 of total revenues for the year ended April 30, 2013. As of April 30, 2014, the Company had $1.98 million in total assets, $4.29 million in total liabilities and a $2.30 million total stockholders' deficit. A full-text copy of the Form 10-K is available for free at: http://is.gd/qYbQ26 About Circle Star Fort Worth, Tex.-based Circle Star Energy Corp. (OTC BB: CRCL) owns a variety of non-operated working interests and overriding royalty interests in approximately 73 producing wells in Texas. The interests range from less than 1% up to approximately 5% in each well. The wells are located in the following areas: Permian Basin, Eagle Ford Shale, Pearsall Field, Giddings Field & the Woodbine Field. The wells are operated by Apache (Permian), Chesapeake (Eagle Ford Shale), CML (Giddings, Pearsall & Permian), Leexus (Giddings) and Woodbine Acquisitions (Woodbine). As of April 30, 2013, the Company had approximately 430 net leased acres in Texas. The Company also operates 2 wells in Kansas. The Company owns a 25% working interest (approximately 20% net revenue interest) before payout and a 43.75% working interest (approximately 35% net revenue interest) after payout in both wells which are located in Trego County. As of July, 31, 2013, the Company had approximately 9,838 net leased acres in Kansas. Approximately 1,480 are located in Trego County and approximately 8,358 are located in Sheridan County. There are multiple potential pay zones of interest with the primary zones of interest being the Arbuckle, Marmaton & Lansing-Kansas City ranging from approximately 3,200 feet to approximately 4,300 feet in depth. CHINA TELETECH: To Buy 51% of Shenzhen Jinke's Assets ----------------------------------------------------- China Teletech Holding, Inc., entered into a cooperation agreement with Shenzhen Jinke Energy Development Co., Ltd., pursuant to which the Company will purchase, in an aggregate, 51% of all the assets of SJD, with purchase price to be paid in two installments as follows: (i) the Company will issue to SJD 20 million shares (the "First Stock Issuance") of the Company's common stock, par value $0.01 per share in exchange for the 16% of all the assets of SJD; and (ii) the Company will, upon completion of a financing, purchase the additional 35% of the assets of SJD in consideration of (x) such amount of the shares of Common Stock to be issued to SJD as proportionate to the First Stock Issuance (approximately 43.75 million shares, the "Second Stock Issuance"), or (y) such amount of cash as equivalent to the fair market value of the Second Stock Issuance, in both cases, subject to adjustment based on result of the due diligence. A copy of the Cooperation Agreement, dated as of June 30, 2014, by and among the Company and Shenzhen Jinke Energy Development Co., Ltd., is available for free at http://is.gd/F4LajP About China Teletech Tallahassee, Fla.-based China Teletech Holding, Inc., is a national distributor of prepaid calling cards and integrated mobile phone handsets and a provider of mobile handset value-added services. The Company is an independent qualified corporation that serves as one of the principal distributors of China Telecom, China Unicom, and China Mobile products in Guangzhou City. On June 30, 2012, the Company strategically sold its wholly-owned subsidiary, Guangzhou Global Telecommunication Company Limited ("GGT"), to a third party. GGT was engaged in the trading and distribution of cellular phones and accessories, prepaid calling cards, and rechargeable store-value cards. China Teletech reported a net loss of $1.96 million on $30.87 million of sales for the year ended Dec. 31, 2013, as compared with net income of $53,542 on $26.62 million of sales in 2012. As of Dec. 31, 2013, the Company had $1.15 million in total assets, $1.59 million in total liabilities and a $439,187 total stockholders' deficit. WWC, P.C., in San Mateo, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013, citing that the Company has incurred substantial losses which raise substantial doubt about its ability to continue as a going concern. As reported by the TCR on Aug. 7, 2014, China Teletech dismissed WWC, P.C., effective July 31, 2014. The Company engaged Albert Wong & Co. LLP as the Company's new independent registered public accountant. COMMUNITY FIRST: Reports $379,000 Net Income in Second Quarter -------------------------------------------------------------- Community First, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income available to common shareholders of $379,000 on $4.01 million of total interest income for the three months ended June 30, 2014, as compared with net income available to common shareholders of $98,000 on $4.34 million of total interest income for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income available to common shareholders of $836,000 on $8 million of total interest income as compared with net income available to common shareholders of $14,000 on $8.94 million of total interest income for the same period during the prior year. As of June 30, 2014, the Company had $452.13 million in total assets, $441.51 million in total liabilities and $10.62 million in total shareholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/T93Ewh About Community First Columbia, Tenn.-based Community First, Inc., is a registered bank holding company under the Bank Holding Company Act of 1956, as amended, and became so upon the acquisition of all the voting shares of Community First Bank & Trust on Aug. 30, 2002. The Bank conducts substantially all of its banking activities in Maury, Williamson and Hickman Counties, in Tennessee. Written Agreement On March 14, 2013, the Bank entered into a written agreement with the Tennessee Department of Financial Institutions, the terms of which are substantially the same as those of the Consent Order, including as to required minimum levels of capital the Bank must maintain. The Bank's Tier 1 capital to Average Assets as of December 31, 2013 was below those that the Bank agreed to achieve under the terms of the Consent Order. Based on December 31, 2013 levels of average assets and risk-weighted assets, the required amount of additional Tier 1 capital necessary for the Bank to meet the requirements of the Consent Order was approximately $386. As a result of entering into the Consent Order, the Bank is subject to additional limitations on its operations including accepting, rolling over, or renewing brokered deposits, which could adversely affect the Bank's liquidity and/or operating results. By virtue of entering into the Consent Order, the Bank is also limited from paying deposit rates above national rate caps published weekly by the FDIC, unless the Bank is determined to be operating in a high- rate market area. On December 1, 2011, the Bank received notification from the FDIC that it is operating in a high-rate environment, which allows the Bank to pay rates higher than the national rate caps, but continues to limit the Bank to rates that do not exceed the prevailing rate in the Bank's market by more than 75 basis points. The Bank is also limited, as a result of its condition, in its ability to pay severance payments to its employees and must receive the consent of the FDIC and the Department to appoint new officers or directors. "As of December 31, 2013, we believe that the Bank is in compliance with all provisions of the Consent Order that were required to be completed by December 31, 2013, with the exception of attaining the Tier I capital to average assets ratio required by the Consent Order. In accordance with the terms of the Consent Order, management has submitted a capital plan with the objective of attaining the capital ratios required by the Consent Order. The FDIC has accepted the capital plan. In addition to the capital plan, all other plans required by the Consent Order have been prepared and submitted to the FDIC and have been accepted by the FDIC," the Company said in the annual report for the year ended Dec. 31, 2013. COMMUNITYONE BANCORP: Had $2 Billion Total Assets at June 30 ------------------------------------------------------------ CommunityOne Bancorp filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended June 30, 2014. Total assets at June 30, 2014, were $2.01 billion, an increase of $28.5 million, or 1%, compared to total assets of $1.99 billion at Dec. 31, 2013. Cash and interest-bearing balances were $70.5 million at June 30, 2014, an increase of $3 million, or 5%, compared to $67.4 million at Dec. 31, 2013, primarily as a result of increases in the deposit portfolio and repayments and maturities of investment portfolio securities Shareholders' equity at June 30, 2014, was $92.7 million as compared to $80.4 million at Dec. 31, 2013. Net income at June 30, 2014, was $2.79 million compared to a net loss of $3.18 million for the three months ended June 30, 2013. A full-text copy of the Form 10-Q is available for free at: http://is.gd/156f9O About CommunityOne CommunityOne Bancorp (formerly FNB United) is the North Carolina- based bank holding company for CommunityOne Bank, N.A. (community1.com), which offers a full range of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth and online banking services through 55 branches in 44 communities throughout the central, southern and western regions of the state. CommunityOne Bancorp incurred a net loss of $1.48 million in 2013, a net loss of $40 million in 2012, and a $137.31 million net loss in 2011. CST BRANDS: Lehigh Gas Deal No Impact on Moody's 'Ba2' CFR ---------------------------------------------------------- Moody's Investors Service said that CST Brands, Inc.'s announcement that it has entered into an agreement to purchase 100% of the membership interests of Lehigh Gas GP LLC, the general Partner of Lehigh Gas Partners LP from Lehigh Gas Corporation, will have no immediate impact on CST's Ba2 Corporate Family Rating or its stable ratings outlook. CST will pay $17 million in cash and about two million shares of CST common stock for the acquisition. The transaction is expected to close in the fourth quarter of 2014. The principal methodology used in rating CST Brands, Inc. was Global Retail Industry published in June 2011. CST Brands, Inc. is one of the largest independent retailers of motor fuels and convenience merchandise in North America. DAUPHIN MEDIA: Files Bankruptcy in Toronto ------------------------------------------ Dauphin Media Group Limited has filed for bankruptcy in Toronto, Ontario, on Aug. 1. A first meeting of creditors will be held on Aug. 21, 2014, at 11:00 a.m. at the Office of the Superintendent of Bankruptcy, 25 St. Clair Avenue East, Suite 600, Toronto, ON. Ira Smith, Trustee and Receiver Inc., has been naed as trustee for the case, and may be reached at: IRA SMITH, TRUSTEE AND RECEIVER INC. 167 Applewood Cres. Concord, ON L4K 4K7 Tel: 905-738-4167 Fax: 605-738-9848 DETROIT, MI: Federal Court Asked to Suspend Bankruptcy Appeals -------------------------------------------------------------- Reuters reported that attorneys for the city, Michigan, Detroit pension funds, unions, and others have asked the federal court to suspend seven pending appeals over Detroit's eligibility for bankruptcy until the city concludes a confirmation process for its plan to adjust $18 billion of debt. According to the report, attorneys for the parties said moving forward with the cases now would "significantly undermine" settlements and mediation and could delay the city's exit. The parties, however, declined to dismiss their cases at this point, the report related. About City of Detroit, Michigan The City of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The City's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. The Hon. Steven Rhodes oversees the bankruptcy case. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. A nine-member official committee of retired workers was appointed in the case. The Retirees' Committee is represented by Dentons US LLP. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. DETROIT, MI: Pensioners Face Moment of Truth on Ch. 9 Appeals ------------------------------------------------------------- Law360 reported that the Sixth Circuit gave retiree groups that have inched toward abandoning their fight against Detroit's pension-cutting plan a deadline to make up their minds, saying their decision can't wait because the appeals must be resolved before the city's blockbuster confirmation trial. According to the report, writing for a three-judge panel, U.S. Circuit Judge Julia Smith Gibbons told the appellants -- pension funds and retiree groups -- that they must either withdraw their appeals or be prepared for the court to rule, possibly without holding oral arguments. About City of Detroit, Michigan The City of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The City's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. The Hon. Steven Rhodes oversees the bankruptcy case. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. A nine-member official committee of retired workers was appointed in the case. The Retirees' Committee is represented by Dentons US LLP. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. DETROIT, MI: Hold-Out Creditor Argues for Dismissal of Ch. 9 ------------------------------------------------------------ Lisa Lambert, writing for Reuters, reported that Financial Guaranty Insurance Company, which is one of the biggest hold-out creditors in Detroit's bankruptcy, plan to argue for a dismissal of the Chapter 9 case to lead to more equitable treatment of all the city's creditors. According to the report, Stephen Spencer, managing director of Houlihan Lokey who was commissioned by FGIC, said dismissing the case would lead to a more equitable treatment of all unsecured claims and "force the city to implement a more comprehensive and effective operational restructuring." About City of Detroit, Michigan The City of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The City's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. The Hon. Steven Rhodes oversees the bankruptcy case. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. A nine-member official committee of retired workers was appointed in the case. The Retirees' Committee is represented by Dentons US LLP. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. DETROIT, MI: Was Insolvent When Bankruptcy Filed, Auditor Says -------------------------------------------------------------- Steven Church, writing for Bloomberg News, reported that a so- called comprehensive annual financial report said Detroit was insolvent when it filed its record $18 billion municipal bankruptcy last year, with a deficit of $130 million. According to the report, city auditor KPMG LLP verified the accuracy of the CAFR, which state officials received in July after a seven-month delay. About City of Detroit, Michigan The City of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The City's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. The Hon. Steven Rhodes oversees the bankruptcy case. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. A nine-member official committee of retired workers was appointed in the case. The Retirees' Committee is represented by Dentons US LLP. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. DTD PIZZA: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: DTD Pizza, LLC dba Papa Murphy's Take 'N' Bake Pizza 8301 Lakeview Pkwy #111-301 Rowlett, TX 75088 Case No.: 14-33869 Chapter 11 Petition Date: August 7, 2014 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Hon. Barbara J. Houser Debtor's Counsel: Jesse Blanco, Esq. LAW OFFICES OF JESSE BLANCO & ASSOCIATES 7406 Garden Grove San Antonio, TX 78250 Tel: (713) 320-3732 Fax: (210) 509-6903 Email: blancolaw@gmail.com Total Assets: $638,943 Total Debts: $2.37 million The petition was signed by Brian Watson, managing member. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/txnb14-33869.pdf ELECTRONIC GAME: Securities Discovery Ban Hinges On Subpoena Date ----------------------------------------------------------------- Law360 reported that the Ninth Circuit has ruled that a key securities law was never intended to ban the use of evidence requested prior to discovery freezes, reviving a class action against the bankrupt maker of an electronic scratch-off card and greenlighting investors' evidence related to a catastrophic merger rollback. According to the report, investors sued Electronic Game Card Inc. and its former executives and directors for allegedly concealing the existence of an agreement that would reverse a takeover if the target's board were switched out. The case is Dalton Petrie, et al v. Electronic Game Card, Inc., et al., Case No. 12-55620 (9th Cir.). ENDEAVOUR INTERNATIONAL: Net Loss Increased to $37.1MM in Q2 ------------------------------------------------------------ Endeavour International Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q on Aug. 7, 2014. As of June 30, 2014, the Company had $913.2 million in outstanding debt and $83.2 million in cash, totaling $830 million in outstanding indebtedness with a fair value of $648.6 million, net of cash. The Company anticipates that it will rely on its existing cash balances and cash generated from operations to satisfy its liquidity needs. "We are primarily dependent upon our three fields in the U.K. - Alba, Bacchus and Rochelle - for our cash flows from operations. If we incur delays in production, such as those resulting from the mechanical issues experienced at the Rochelle field and the subsequent unplanned shutdown at the Scott platform discussed in "Liquidity and Capital Resources," it will negatively impact our cash flows, results of operations and financial condition," the Company stated in the Report. The Company reported a net loss to common stockholders of $37.12 million on $44.85 million of revenues for the three months ended June 30, 2014, as compared with a net loss to common stockholders of $14.34 million on $126.16 million of revenues for the same period in 2013. For the six months ended June 30, 2014, the Company incurred a net loss to common stockholders of $82.45 million on $139.02 million of revenues as compared with a net loss to common stockholders of $28.84 million on $183.83 million of revenues for the same period last year. As of June 30, 2014, the Company had $1.55 billion in total assets, $1.55 billion in total liabilities, $43.70 million in series c convertible preferred stock and a $41.48 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/4oKe4H About Endeavour International Houston-based Endeavour International Corporation (NYSE: END) (LSE: ENDV) is an oil and gas exploration and production company focused on the acquisition, exploration and development of energy reserves in the North Sea and the United States. Endeavour International reported net loss of $95.47 million in 2013, a net loss of $126.22 million in 2012 and a net loss of $130.99 million in 2011. * * * As reported by the TCR on April 2, 2014, Moody's Investors Service upgraded Endeavour International Corporation's Corporate Family Rating (CFR) to Caa2 from Caa3. "The rating upgrade to Caa2 reflects the recent equity issuance and other first quarter financing transactions that have improved Endeavour International's liquidity" commented Pete Speer, Moody's Vice President. In the Feb. 22, 2013, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit rating on Houston, Texas-based Endeavour International Corp. (Endeavour) to 'CCC+' from 'B-'. The rating action reflects S&P's expectation that Endeavour could have insufficient liquidity to meet its needs due to the delay in production from its Rochelle development. EURAMAX HOLDINGS: Incurs $3.1 Million Net Loss in Second Quarter ---------------------------------------------------------------- Euramax Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.11 million on $232.99 million of net sales for the three months ended June 27, 2014, as compared with a net loss of $1.55 million on $229.86 million of net sales for the three months ended June 28, 2013. For the six months ended June 27, 2014, the Company reported a net loss of $22.38 million on $402.89 million of net sales as compared with a net loss of $29.67 million on $402.40 million of net sales for the six months ended June 28, 2013. As of June 27, 2014, the Company had $610.95 million in total assets, $742.06 million in total liabilities and a $131.11 million total shareholders' deficit. Hugh Sawyer, interim president of Euramax Holdings, Inc., and a professional in Huron Consulting Group's Business Advisory Practice, commented, "Our operating performance for the second quarter of 2014 reflects improvements in net sales, operating income and Adjusted EBITDA versus the first quarter of 2014. Moreover, net sales, operating income and Adjusted EBITDA increased versus the second quarter of 2013. We believe our U.S. Commercial Products segment benefited from the release of pent up demand due to severe winter weather conditions experienced during the first quarter of 2014. Net sales in our U.S. Residential Products segment remained relatively flat over the prior year quarter substantially due to lower net sales in our home center business. Operating income in our international segments improved due to the realization of cost savings from operational initiatives undertaken in the prior year. The Company has aggressively managed costs, implemented operational efficiencies and pursued business development initiatives in our international segments as end market demand thus far remains below historical levels." A full-text copy of the Form 10-Q is available for free at: http://is.gd/ycSGZz About Euramax Based in Norcross, Georgia, Euramax International, Inc., is a leading international producer of aluminum, steel, vinyl and fiberglass products for original equipment manufacturers, distributors, contractors and home centers in North America and Western Europe. The Company was acquired for $1 billion in 2005 by management and Goldman Sachs Capital Partners. Euramax Int'l has subsidiaries in Canada (Euramax Canada, Inc.), United Kingdom (Ellbee Limited and Euramax Coated Products Limited), and The Netherlands (Euramax Coated Products B.V.), and France (Euramax Industries S.A.). Euramax Holdings reported a net loss of $24.89 million on $826.67 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $36.76 million on $837.14 million of net sales for the year ended Dec. 31, 2012. The Company incurred a net loss of $62.71 million in 2011. Bankruptcy Warning "Any default under the agreements governing our indebtedness, including a default under the ABL Credit Facility and the Senior Unsecured Loan Facility, that is not waived by the required holders of such indebtedness, could leave us unable to pay principal, premium, if any, or interest on the Notes and could substantially decrease the market value of the Notes. If we are unable to generate sufficient cash flow and are otherwise unable to obtain funds necessary to meet required payments of principal, premium, if any, or interest on such indebtedness, or if we otherwise fail to comply with the various covenants, including financial and operating covenants, in the instruments governing our existing and future indebtedness, including the ABL Credit Facility and the Senior Unsecured Loan Facility, we could be in default under the terms of the agreements governing such indebtedness. In the event of such default, the holders of such indebtedness could elect to declare all the funds borrowed thereunder to be due and payable, together with any accrued and unpaid interest, the lenders under the ABL Credit Facility could elect to terminate their commitments, cease making further loans and institute foreclosure proceedings against the assets securing such facilities and we could be forced into bankruptcy or liquidation," the Company said in the 2013 Annual Report. * * * As reported by the TCR on Dec. 13, 2012, Moody's Investors Service downgraded Euramax International, Inc.'s corporate family rating and probability of default rating to Caa2 from Caa1. The downgrade reflects Moody's expectation that the turmoil in global financial markets and weakness in Europe will continue to hamper Euramax's revenues and operating margins as well as weaken key credit metrics. As reported by the TCR on July 30, 2009, Standard & Poor's Ratings Services raised its ratings on Norcross, Georgia-based Euramax International Inc., including the long-term corporate credit rating, to 'B-' from 'D'. "The ratings upgrade reflects the company's highly leveraged, although somewhat improved, financial risk profile following a recent out-of-court restructuring," said Standard & Poor's credit analyst Dan Picciotto. "As a result of the restructuring, Euramax's second-lien debtholders received equity and about half of its new $513 million of first-lien debt is pay-in-kind, providing some cash flow benefit," he continued. FAIR FINANCE: Convicted CFO Agrees To Pay $1.7M Back To Co. ----------------------------------------------------------- Law360 reported that the former chief financial officer of bankrupt Fair Finance Co., currently serving a 10-year prison sentence, has agreed to pay $1.76 million to the company's bankruptcy trustee after participating in a $200 million scam involving the CEO of movie company National Lampoon Inc. According to the report, ex-CFO Rick Snow will pay $1.763 million, the parties said. U.S. District Judge Patricia Gaughan signed off on the deal, which FFC bankruptcy trustee Brian Bash initially requested court approval of in a June filing in the related bankruptcy case. The case is Snow v. Bash, Case No. 5:12-cv-00980 (N.D. Ohio). About Fair Finance Akron, Ohio-based investment company Fair Finance Co. was closed following a November 2009 raid by the U.S. Federal Bureau of Investigation. Fair Finance's owner, Indiana businessman Timothy S. Durham, a Republican political contributor whose holdings include National Lampoon Inc., has been targeted in lawsuits and investigations over claims he funded a luxurious lifestyle with the proceeds of a Ponzi scheme. Three creditors -- Nick Spada, Jacques Dunaway, and Robert Ripley -- filed on Feb. 8, 2010, a petition to send Fair Finance to Chapter 7 liquidation (Bankr. N.D. Oh. Case No. 10-50494). David Mucklow, Esq., serves as counsel to the petitioners. Brian Bash was appointed bankruptcy trustee. A motion to appoint a trustee filed by the petitioning creditors said that Mr. Durham and co-owner James Cochran took $176 million in loans transferred from the investment fund into Fair Holdings LLC and DC Investments LLC. They used the money to fund $220 million in other loans, according to the filing. FANNIE MAE: Aug. 29 Deadline for Continental Western to Respond --------------------------------------------------------------- Magistrate Judge Ross A. Walters in Des Moines, Iowa, entered an order last week denying Continental Western Insurance Company's motion to compel production of the administrative record on which the Federal Housing Finance Agency and the United States Department of the Treasury based their decision to enter into the Third Amendment under which Fannie Mae and Freddie Mac remit all of their earnings to the Treasury Department, and giving the insurer until Aug. 29, 2014, to respond to FHFA and Treasury's motions to dismiss Continental Western's lawsuit challenging the Third Amendment. The parties in this litigation are represented by: -- David H. Thompson, Esq., at Cooper & Kirk, PLLC, representing Continental Western Insurance Company; -- Howard N. Cayne, Esq., at Arnold & Porter LLP, representing FHFA; and -- Joel McElvain, Esq., from the Department of Justice, representing the Department of the Treasury. Magistrate Walters says that the motions to dismiss appear to advance purely legal arguments and no more documents are necessary for Continental Western to respond to FHFA and Treasury's facial challenge to the Complaint and for the court to rule on those motions. About Fannie Mae Federal National Mortgage Association, aka Fannie Mae, is a government-sponsored enterprise that was chartered by U.S. Congress in 1938 to support liquidity, stability and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold. The U.S. Department of the Treasury owns Fannie Mae's senior preferred stock and a warrant to purchase 79.9 percent of its common stock, and Treasury has made a commitment under a senior preferred stock purchase agreement to provide Fannie with funds under specified conditions to maintain a positive net worth. Fannie Mae reported net income of $83.98 billion on $117.54 billion of total interest income for the year ended Dec. 31, 2013, as compared with net income of $17.22 billion on $129.19 billion of total interest income for the year ended Dec. 31, 2012. As of March 31, 2014, the Company had $3.22 trillion in total assets, $3.21 trillion in total liabilities and $8.09 billion in total equity. Conservatorship Fannie Mae has operated under the conservatorship of the Federal Housing Finance Agency ("FHFA") since Sept. 6, 2008. Fannie Mae has not received funds from Treasury since the first quarter of 2012. The funding the company has received under its senior preferred stock purchase agreement with Treasury has provided the company with the capital and liquidity needed to fulfill its mission of providing liquidity and support to the nation's housing finance markets and to avoid a trigger of mandatory receivership under the Federal Housing Finance Regulatory Reform Act of 2008. For periods through March 31, 2014, Fannie Mae has requested cumulative draws totaling $116.1 billion and paid $121.1 billion in dividends to Treasury. Under the senior preferred stock purchase agreement, the payment of dividends cannot be used to offset prior draws. As a result, Treasury maintains a liquidation preference of $117.1 billion on the Company's senior preferred stock. FANNIE MAE: Reports Net Income of $3.7 Billion in Second Quarter ---------------------------------------------------------------- Federal National Mortgage Association filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $3.66 billion on $28.74 billion of total interest income for the three months ended June 30, 2014, as compared with net income of $10.09 billion on $28.97 billion of total interest income for the same period in 2013. Net income in the second quarter of 2014 declined compared with the first quarter of 2014, due primarily to a decline in the amount of income recognized by the company from settlement agreements related to private-label mortgage-related securities sold to Fannie Mae. This decline was partially offset by an increase in the Company's benefit for credit losses due primarily to higher home prices in the second quarter of 2014. For the six months ended June 30, 2014, the Company reported net income of $8.99 billion on $57.92 billion of total interest income as compared with net income of $68.78 billion on $59.15 billion of total interest income for the same period during the prior year. The Company's balance sheet at June 30, 2014, showed $3.21 trillion in total assets, $3.21 trillion in total liabilities and $6.11 billion in total equity. "We have been under conservatorship, with the Federal Housing Finance Agency ("FHFA") acting as conservator, since September 6, 2008. As conservator, FHFA succeeded to all rights, titles, powers and privileges of the company, and of any shareholder, officer or director of the company with respect to the company and its assets. The conservator has since delegated specified authorities to our Board of Directors and has delegated to management the authority to conduct our day-to-day operations. Our directors do not have any fiduciary duties to any person or entity except to the conservator and, accordingly, are not obligated to consider the interests of the company, the holders of our equity or debt securities or the holders of Fannie Mae MBS unless specifically directed to do so by the conservator. We describe the rights and powers of the conservator, key provisions of our agreements with the U.S. Department of the Treasury ("Treasury"), and their impact on shareholders in our Annual Report on Form 10-K for the year ended December 31, 2013 ("2013 Form 10-K") in "Business--Conservatorship and Treasury Agreements." A full-text copy of the Form 10-Q is available for free at: http://is.gd/QC4LdB About Fannie Mae Federal National Mortgage Association, aka Fannie Mae, is a government-sponsored enterprise that was chartered by U.S. Congress in 1938 to support liquidity, stability and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold. The U.S. Department of the Treasury owns Fannie Mae's senior preferred stock and a warrant to purchase 79.9 percent of its common stock, and Treasury has made a commitment under a senior preferred stock purchase agreement to provide Fannie with funds under specified conditions to maintain a positive net worth. Fannie Mae reported net income of $83.98 billion on $117.54 billion of total interest income for the year ended Dec. 31, 2013, as compared with net income of $17.22 billion on $129.19 billion of total interest income for the year ended Dec. 31, 2012. FIAT CHRYSLER: Sued over Jeep Ignition-Switch Failures ------------------------------------------------------ Margaret Cronin Fisk, writing for Bloomberg News, reported that Chrysler Group LLC was sued over allegedly faulty ignition switches in Jeeps, in a follow-up to more than 120 lawsuits General Motors faces over the same defect. According to the report, both automakers are accused of employing ignition switches that can be unexpectedly turned off, cutting power to brakes, steering and airbags and causing potentially deadly loss of control. The Chrysler lawsuit, filed on June 29 in federal court in Riverside, California, follows the automaker's announcement last week that it would recall almost 800,000 Grand Cherokees and Commanders made from 2005 to 2007 because a driver's knee could bump the key out of the "on" position, the report related. The case is Lumpkin v. Chrysler Group LLC, 14-cv-01555, U.S. District Court, Central District of California (Riverside). FIRST AMERICAN PAYMENT: Moody's Affirms B2 Corp. Family Rating -------------------------------------------------------------- Moody's Investors Service affirmed the First American Payment Systems, L.P.'s ("FAPS") B2 Corporate Family Rating ("CFR"), B2-PD Probability of Default Rating ("PDR"), and the instrument ratings following the sale of FAPS to an investment group led by Ontario Teachers' Pension Plan ("Teachers") and amendments to loosen the financial leverage covenants. The outlook is stable. No new debt is being issued and the existing debt will be reduced slightly as a requirement to allow it to remain in place following this change in control of FAPS. The investment group led by Teachers' is using cash equity to purchase all of Lindsay Goldberg's equity, with management maintaining its equity interest as part of the transaction. Affirmations: Issuer: First American Payment Systems, L.P. Corporate Family Rating, Affirmed B2 Probability of Default Rating, Affirmed B2-PD Senior Secured First Lien Bank Credit Facility (Term Loan), Affirmed Ba3 (LGD3) Senior Secured First Lien Bank Credit Facility (Revolver), Affirmed Ba3 (LGD3) Senior Secured Second Lien Bank Credit Facility (Term Loan), Affirmed Caa1 (LGD5) Outlook Actions: Issuer: First American Payment Systems, L.P. Outlook, Remains Stable Ratings Rationale The financial leverage covenants on both the Senior Secured First Lien Credit Facility ("First Lien Debt") and the Senior Secured Second Lien Credit Facility ("Second Lien Debt") were scheduled to tighten rapidly over the near term. The amendment will relax the covenants on both the First Lien Debt and the Second Lien Debt and will thus permit FAPS to maintain high leverage over a longer horizon than is currently the case and suggests that the deleveraging activity of the past several quarters has come to an end. The B2 CFR reflects FAPS's high leverage, its relatively small market share, and its exposure to smaller sized customers, which have a higher risk of attrition and chargeback liabilities. Moreover, given the private equity ownership, Moody's anticipate that debt to EBITDA (Moody's standard adjustments) will remain moderate to high due to periodic debt-funded acquisitions and equity distributions. Nevertheless, the rating is supported by FAPS's consistent Free Cash Flow ("FCF"), which reflects the combination of a recurring transaction-based revenue stream from multi-year contracts with merchants and modest capital expenditure requirements. The stable outlook reflects Moody's expectation that FAPS will generate flat to low single digit revenue growth over the next 12 to 18 months. Although Moody's expect EBITDA to be flat over the period, as the margin benefit from the Durbin Amendment reduction in debit interchange charges decreases following contract renewals, Moody's expect that a return to revenue growth will produce increasing EBITDA. Thus, over the intermediate term, Moody's expect EBITDA and FCF to increase as FAPS benefits from increased scale. Moody's anticipate that Teachers' use of leverage will be limited to acquisitions to increase FAPS's revenue base, foregoing shareholder distributions until meaningful deleveraging has occurred. The rating could be upgraded if FAPS profitably expands its market share and maintains its conservative financial policy of foregoing equity distributions. Thus, Moody's would expect that FCF to debt (Moody's adjusted) would remain at least in the low teens percent for an extended period. The rating could be downgraded if FAPS were to experience a weakening competitive position, as evidenced by increased customer churn and declining margins. The rating could also be downgraded if Moody's believe that FCF to debt will remain below the mid single digits, for an extended period. First American Payment Systems (FAPS), based in Fort Worth, Texas, is a merchant acquirer providing credit, debit and other electronic payment processing services for merchants in United States and Canada. FAPS is owned by an investor group led by Ontario Teachers' Pension Plan. The principal methodology used in this rating was Global Business & Consumer Service Industry Rating Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. FIRST DATA: Incurs $34.5 Million Net Loss in Second Quarter ----------------------------------------------------------- First Data Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $34.5 million on $2.83 billion of total revenue for the three months ended June 30, 2014, as compared with a net loss attributable to the Company of $189.1 million on $2.70 billion of total revenue for the same period last year. For the six months ended June 30, 2014, First Data reported a net loss attributable to the Company of $235 million on $5.47 billion of total revenue as compared with a net loss attributable to the Company of $526.5 million on $5.29 billion of total revenue for the same period during the prior year. As of June 30, 2014, the Company had $37.23 billion in total assets, $35.74 billion in total liabilities, $70 million in redeemable noncontrolling interest, and $1.41 billion in total equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/rIhpWi About First Data Based in Atlanta, Georgia, First Data Corporation provides commerce and payment solutions for financial institutions, merchants, and other organizations worldwide. First Data reported a net loss attributable to the Company of $869.1 million in 2013, a net loss attributable to the Company of $700.9 million in 2012 and a net loss attributable to the Company of $516.1 million in 2011. * * * The Company carries a 'B3' corporate family rating, with a stable outlook, from Moody's Investors Service, a 'B' corporate credit rating, with stable outlook, from Standard & Poor's, and a 'B' long-term issuer default rating from Fitch Ratings. FONTAINEBLEAU LAS VEGAS: Info on Ex-Principal's Worth Sought ------------------------------------------------------------ Law360 reported that term lenders are fighting a settlement of director and officer litigation in the failed $2.9 billion Fontainebleau Las Vegas resort and casino project and have asked a Florida bankruptcy judge to force real estate mogul and Fontainebleau principal Jeffrey Soffer to cough up his financial information. According to the report, the term lenders said Soffer is asking for a blanket protective order to bar the term lenders from obtaining any discovery related to his financial condition except for a personal financial statement that he would create for the proceeding. About Fontainebleau Las Vegas Fontainebleau Las Vegas -- http://www.fontainebleau.com/-- was planned as a hotel-casino on property along the Las Vegas Strip. Its developer, Fontainebleau Las Vegas Holdings LLC and affiliates, filed for Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 09-21481) on June 9, 2009. Scott L Baena, Esq., at BilzinSumbergBaena Price & Axelrod LLP, represented the Debtors in their restructuring effort. Kurtzman Carson Consulting LLC served as the Debtors' claims agent. Attorneys at Genovese Joblove& Battista, P.A., and Fox Rothschild, LLP, represented the Official Committee of Unsecured Creditors. Fontainebleau Las Vegas LLC estimated more than $1 billion in assets and debts, while each of Fontainebleau Las Vegas Capital Corp. and Fontainebleau Las Vegas Holdings LLC estimated less than $50,000 in assets. In February 2010, Icahn Enterprises L.P. acquired Fontainebleau for roughly $150 million. The bankruptcy case was subsequently converted to Chapter 7. Soneet R. Kapila has been named the trustee for the Chapter 7 case of Fontainebleau Las Vegas. FREDDIE MAC: Aug. 29 Deadline for Continental Western to Respond ---------------------------------------------------------------- Magistrate Judge Ross A. Walters in Des Moines, Iowa, entered an order last week denying Continental Western Insurance Company's motion to compel production of the administrative record on which the Federal Housing Finance Agency and the United States Department of the Treasury based their decision to enter into the Third Amendment under which Fannie Mae and Freddie Mac remit all of their earnings to the Treasury Department, and giving the insurer until Aug. 29, 2014, to respond to FHFA and Treasury's motions to dismiss Continental Western's lawsuit challenging the Third Amendment. The parties in this litigation are represented by: -- David H. Thompson, Esq., at Cooper & Kirk, PLLC, representing Continental Western Insurance Company; -- Howard N. Cayne, Esq., at Arnold & Porter LLP, representing FHFA; and -- Joel McElvain, Esq., from the Department of Justice, representing the Department of the Treasury. Magistrate Walters says that the motions to dismiss appear to advance purely legal arguments and no more documents are necessary for Continental Western to respond to FHFA and Treasury's facial challenge to the Complaint and for the court to rule on those motions. About Freddie Mac Based in McLean, Virginia, the Federal Home Loan Mortgage Corporation, known as Freddie Mac (OTCBB: FMCC) -- http://www.FreddieMac.com/-- was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters. Freddie Mac is under conservatorship and is dependent upon the continued support of Treasury and the Federal Housing Finance Agency acting as conservator to continue operating its business. GENERAL MOTORS: Judge Denies Motion to Dismiss Ignition Suit ------------------------------------------------------------ The Associated Press reported that a Georgia judge has denied a motion by General Motors to dismiss a wrongful-death case against the auto maker and set a trial date for April 2016. According to the report, the family of Brooke Melton, a 29-year-old nurse who died in a 2010 car crash near Atlanta, settled last year with GM for $5 million, but the case exposed how GM let millions of cars stay on the road even after discovering ignition-switch flaws linked to at least 13 deaths. The Meltons filed a new complaint in May that GM fraudulently concealed evidence during the first case and GM had filed for dismissal of the case because they said it had already been settled, but that was denied, the report related. 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. GENERAL MOTORS: 120 Claims Tied to Ignition-Switch Defect Filed --------------------------------------------------------------- Christina Rogers and Mike Ramsey, writing for The Wall Street Journal, reported that General Motors Co.'s compensation program has received about 120 claims in its first eight days. According to the report, more than half of the number involved deaths allegedly linked to GM cars that were recalled earlier this year to fix an ignition-switch defect. The Journal, citing Kenneth Feinberg, the lawyer hired by GM to oversee the program, said of the claims filed so far, about 65 were reported by families who say the victims were killed in accidents involving cars that were subject to the 2.6-million-car recall. Another dozen claims involved catastrophic injuries and the remaining are from people who were hospitalized, the Journal related, further citing Mr. Feinberg. 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. GENERAL MOTORS: Judge Keeps Ignition Switch Case on Pause --------------------------------------------------------- Law360 reported that a New York bankruptcy judge denied a bid by plaintiffs to proceed with a proposed class action against General Motors Co. over an ignition switch defect, ruling that their suit -- like nearly 90 other related cases -- should be stayed while he considers whether GM can use its bankruptcy defense. According to the report, U.S. Bankruptcy Judge Robert Gerber denied the request by plaintiffs including Lisa Phaneuf and Adam Smith, whose suit is among the dozens consolidated in multidistrict litigation before U.S. District Judge Jesse Furman. 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. GESTION RER: Hydro Turbine Maker Must File Plan by Aug. 29 ---------------------------------------------------------- The District Court of Quebec entered an Order on July 30, 2014, under the Companies' Creditors Arrangement Act, and appointed Raymond Chabot Inc. as monitor of the financial and business affairs of Gestion Rer Inc., Rer Hydro LTEE and Hydroliennes Trec Saint-Laurent Inc. The Debtors are required to submit a plan of arrangement no later than August 29, 2014, or ask the Court for an extension of that deadline. For more information, contact: Emmanuel Phaneuf, M.Sc., CIRP RAYMOND CHABOT INC National Bank Tower 600 De La Gauchetierre Street West, Suite 2000 Montreal (Quebec) H3B 4L8 Tel: 514-897-1385 Fax: 514-878-2100 E-mail: phaneuf.emmanuel@rcgt.com 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 96.07 cents-on- the-dollar during the week ended Friday, Aug. 8, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.52 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. GGW BRANDS: 'Girls Gone Wild' Founder Says Judge Can't Jail Him --------------------------------------------------------------- Law360 reported that "Girls Gone Wild" founder Joe Francis told a California bankruptcy court that he should not be jailed after the judge found him in contempt for entering the offices of his bankrupt company, arguing the court couldn't lawfully hand down such a sanction. According to the report, opposing the imposition of incarceration as a sanction, Francis' attorneys claimed a holding of criminal contempt is beyond the power of the bankruptcy court and its non-Article III judge, due to the lack of express statutory authority. About GGW Brands Santa Monica, California-based GGW Brands, LLC, the company behind the "Gils Gone Wild" video, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 13-15130) on Feb. 27, 2013. Judge Sandra R. Klein oversees the case. The company is represented by the Law Offices of Robert M. Yaspan. The company disclosed $0 to $50,000 in estimated assets and $10 million to $50 million in estimated liabilities in its petition. Affiliates GGW Events LLC, GGW Direct LLC and GGW Magazine LLC also sought Chapter 11 protection. GGW Marketing, LLC, another affiliate, filed a voluntary Chapter 11 petition on May 22, 2013, before the Bankruptcy Court for the Central District of California (Los Angeles). The case is assigned Case No. 13-23452. Martin R. Barash, Esq., and Matthew Heyn, Esq., at Klee, Tuchin, Bogdanoff and Stern, LLP, in Los Angeles, California, represent GGW Marketing. In April 2013, R. Todd Neilson, an ex-FBI agent, was appointed as Chapter 11 Trustee to take over the companies. Mr. Neilson has investigated failed solar-power company Solyndra and was involved in the Mike Tyson and Death Row Records bankruptcy cases. In April 2014, the Chapter 11 Trustee sold the "Girls Gone Wild" video franchise and its assets for $1.83 million. An auction set earlier that month was canceled because there were no bids to compete with the so-called stalking horse, who isn't affiliated with founder Joe Francis. GLYECO INC: Signs Consulting Agreement with CTO ----------------------------------------------- GlyEco, Inc., entered into a consulting agreement with the Company's Chief Technical Officer, Richard Geib. The Agreement supersedes the terms of the Consulting Agreement previously entered into between Global Recycling Technologies, Ltd., a Delaware corporation, and Mr. Geib on May 3, 2010, which the Company assumed upon the consummation of a reverse triangular merger with Global Recycling on Nov. 28, 2011. The Agreement is for a term of two years and may be extended for additional one-year terms by written agreement. Pursuant to the Agreement, Mr. Geib will assist in the further development and implementation of the Company's proprietary technology for recycling glycol, the GlyEco TechnologyTM, and perform such other duties as requested by the Company's chief executive officer. In consideration for his services during the term, the Company will compensate Mr. Geib with an initial engagement fee of $50,000, a monthly consulting fee of $12,500 per month for the first year of the term, a to be determined monthly consulting fee for the second year of the term, and a total of 2,700,000 warrants to purchase shares of GlyEco common stock, par value $0.0001 per share, at an exercise price of $0.73 per share, of which half will vest immediately and the remaining amount will vest on Aug. 4, 2015. Adopts Amended Bylaws and Code of Conduct The Board of Directors of GlyEco, Inc., approved and adopted Amended and Restated Bylaws. The Amended and Restated Bylaws: * provide that directors will be elected by a plurality of the votes of shares present in person or represented by proxy at each stockholders' meeting and entitled to vote on the election of directors; * clarify the process for fixing a record date to determine which stockholders are entitled to notice of or to vote at any meeting of stockholders or adjournment thereof or in order to make a determination for any other purpose; * clarify that any shares belonging to the Company will not be voted directly or indirectly at any stockholders' meeting and will not be counted in determining the total number of outstanding shares at any given time; * articulate the process by which the Board may create one or more committees and define the scope of assigned responsibilities each committee may have; and * clarify the processes by which the Bylaws may be amended by the Board or the Company's stockholders. On Aug. 5, 2014, the Board of the Company adopted a Code of Business Conduct and Ethics, which sets forth legal and ethical standards of conduct applicable to all directors, officers, and employees of the Company. The Code of Business Conduct and Ethics supersedes and replaces the Code of Ethics previously adopted by the Board of the Company on Jan. 20, 2012. The adoption of the Code of Business Conduct and Ethics did not relate to, or result in, any waiver, explicit or implicit, of any provision of the Prior Code. A copy of the Code of Business Conduct and Ethics may be requested, free of charge, by sending a written communication to Matt Hamilton, General Counsel, at the Company's executive offices. The Code of Business Conduct and Ethics will also be posted on the Company's Web site, www.glyeco.com. About GlyEco, Inc. Phoenix, Ariz.-based GlyEco, Inc., is a green chemistry company formed to roll-out its proprietary and patent pending glycol recycling technology that transforms waste glycols, a hazardous material, into profitable green products. GlyeCo reported a net loss of $4.01 million in 2013, a net loss of $1.86 million in 2012.and a net loss of $592,171 in 2011. As of Dec. 31, 2013, the Company had $15.69 million in total assets, $3.34 million in total liabilities, $1.17 million in mandatorily redeemable series AA convertible preferred stock, and $11.18 million in total stockholders' equity. Semple, Marchal & Cooper, LLP, in Phoenix, Arizona, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has yet to achieve profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable profitable operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. GRD HOLDING: Moody's Lowers Rating on $360MM Sr. Notes to 'B2' -------------------------------------------------------------- Moody's Investors Service downgraded the senior secured note rating of GRD Holding III Corporation's ("GRD"), owner of At Home and Garden Ridge home decor stores, to B3 from B2 following a change in the company's capital structure, as per Moody's Loss Given Default Methodology. Concurrently, Moody's affirmed GRD's B2 Corporate Family Rating and B2-PD Probability of Default Rating. The ratings outlook remains stable. Ratings downgraded: $360 million senior secured Notes due 2019 to B3 (LGD 4) from B2 (LGD 4) Ratings affirmed: Corporate Family Rating, affirmed at B2 Probability of Default Rating, affirmed at B2-PD The ratings outlook is stable outlook Ratings Rationale The downgrade of GRD's notes to B3 from B2 reflects the increase in size of the company's ABL revolver, to $140 million from $90 million. While GRD's notes are secured by substantially all assets of the company, they only have a second lien position on the more liquid assets (receivables and inventory) on which the ABL has a first lien. Thus, Moody's treats the ABL as having a priority position in the capital structure when applying its Loss Given Default Methodology. The ABL increase, along with Moody's expectation for increased borrowing over the near term in support of accelerated store growth, re-branding and other capital spending, will add a material amount of senior debt in the capital structure. GRD's B2 Corporate Family Rating continues to reflect its limited scale and small regional store base with annual revenue of over $400 million and 68 total stores as of April 26. 2014. The rating also reflects the company's high financial leverage and low level of interest coverage stemming from the company's partially debt financed acquisition of controlling interest by AEA Investors LP in October 2011. As of April 26, 2014, lease-adjusted Debt/EBITDA stood at about 6.0 times and adjusted interest coverage was 1.4 times. Following a period of strategic re-alignment, the company has entered a period of significant investment in store growth which may pressure margins going forward as they invest in new store openings, increased marketing, re-branding, and additional overhead to support future growth. While accelerated growth brings significant risks, the company's year-to-date results have been strong, with double digit revenue growth due to new store openings and strong, positive comparable store sales. The rating also considers GRD's large array of product offerings which provide an advantage as it strives to appeal to the home decorating enthusiast, and adequate liquidity. The ratings outlook is stable, reflecting Moody's view that although GRD will invest in new store expansion, continued revenue and earnings growth will lead to improved credit metrics over the next 12-18 months. GRD's ratings could be upgraded if the return on its investment in new stores meets or exceeds the company's consolidated return profile and the company demonstrates the ability and willingness to achieve and maintain debt/EBITDA below 4.5 times and interest coverage above 2.25 times. Ratings could be downgraded if it appears that the rate of return from new store openings will be materially lower than expected, or if operating performance or liquidity were to deteriorate. Specific metrics include debt/EBITDA rising above 6.0 times for an extended period, and/or interest coverage falling below 1.25 times. Through its subsidiaries, GRD Holding III Corporation operated 68 stores (as of April 26, 2014) throughout the South Central, Southeastern and Midwestern regions of the U.S. mainly under the "Garden Ridge" brand name, with several new stores under the new "At Home" brand name. Revenues for the period ended April 26, 2014 exceeded $418 million. The principal methodology used in this rating was the Global Retail Industry published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. GRIFFIN HOMEBUILDING: BofA Can't Bill Firm Owners For $60MM Award ----------------------------------------------------------------- Law360 reported that a California judge said that a $60 million award Bank of America NA and Bank of the West obtained in the federal bankruptcy of Griffin Homebuilding Group LLC does not entitle the banks to collect that debt from the company's individual owners. According to the report, the banks had argued that a federal bankruptcy court's order allowing them pursue their claims for $60 million in unpaid loans against GHG's bankruptcy estate counts as a "judgment" under state law, and thus can be applied to GHG -- not its bankruptcy. GUGGENHEIM PARTNERS: Faker Can't Toss $1.7M Award Through Ch. 7 --------------------------------------------------------------- Law360 reported that U.S. Bankruptcy Judge Elizabeth Stong sided with Guggenheim Partners LLC and ruled that a man who allegedly used the famous surname to peddle millions in sham investments couldn't use Chapter 7 to evade a trial court's $1.69 million damages award. According to the report, Judge Stong ruled that David Birnbaum's debt to Guggenheim was nondischargeable in bankruptcy proceedings because it arose from a "from a willful and malicious injury" he caused -- namely, promoting investments under the name "David Guggenheim" in order to falsely associate with the famous surname. HAMPTON ROADS: Reports $2.5 Million Net Income in Second Quarter ---------------------------------------------------------------- Hampton Roads Bankshares, Inc., reported net income attributable to the Company of $2.47 million on $17.93 million of total interest income for the three months ended June 30, 2014, as compared with net income attributable to the Company of $89,000 on $19.58 million of total interest income for the same period last year. For the six months ended June 30, 2014, the Company reported net income attributable to the Company of $6.33 million on $35.89 million of total interest income as compared with net income attributable to the Company of $721,000 on $39.11 million of total interest income for the same period in 2013. As of June 30, 2014, the Company had $1.97 billion in total assets, $1.78 billion in total liabilities and $194.79 million in total shareholders' equity. "Our operating performance in the second quarter has allowed us to make continued, strategic investments in the Company that we believe will benefit our shareholders, employees and customers over the long term," said Douglas Glenn, president and chief executive officer. "Our commitment to developing a strong and vibrant corporate culture is also resonating in our markets and has attracted talented individuals who we believe will create new opportunities for our company and serve to enhance the customer experience." A full-text copy of the Form 10-Q is available for free at: http://is.gd/QQTa1i About Hampton Roads Bankshares Hampton Roads Bankshares, Inc. (NASDAQ: HMPR) -- http://www.hamptonroadsbanksharesinc.com/-- is a bank holding company that was formed in 2001 and is headquartered in Norfolk, Virginia. The Company's primary subsidiaries are Bank of Hampton Roads, which opened for business in 1987, and Shore Bank, which opened in 1961. Currently, Bank of Hampton Roads operates twenty- eight banking offices in the Hampton Roads region of southeastern Virginia and twenty-four offices in Virginia and North Carolina doing business as Gateway Bank & Trust Co. Shore Bank serves the Eastern Shore of Maryland and Virginia through eight banking offices and 15 ATMs. Hampton Roads reported net income attributable to the Company of $4.07 million in 2013, a net loss attributable to the Company of $25.09 million in 2012 and a net loss attributable to the Company of $97.54 million in 2011. * * * This concludes the Troubled Company Reporter's coverage of Hampton Roads Bankshares until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. HEARTLAND MEMORIAL: McGuireWoods Beats Suit Over Suspect LBO ------------------------------------------------------------ Law360 reported that an Indiana federal judge cleared McGuireWoods LLP of helping insiders at Heartland Memorial Hospital LLC plunder the health care system's assets during a 2006 leveraged buyout that led to its bankruptcy, finding no impropriety in the underlying transaction. According to the report, Chief U.S. District Judge Philip P. Simon determined that Indiana law has explicitly rejected the theory advanced by Chapter 11 trustee David Abrams that directors at Heartland parent company iHealthcare Inc. breached their fiduciary duty when they converted Heartland's real estate assets to cash. The case is Abrams v. Heartland Memorial Hospital LLC et al., Case No. 2:12-cv-00021 (N.D. Ind.). About Heartland Memorial Hospital In January 2007, creditors filed an involuntary Chapter 7 bankruptcy petition against Heartland Memorial Hospital, LLC. On March 2, 2007, the bankruptcy court granted relief against the Debtor and converted the case to Chapter 11. On Nov. 19, 2008, the bankruptcy court confirmed the Debtor's liquidating plan of reorganization and appointed David Abrams, as liquidating trustee. IOWA GAMING: Section 341(a) Meeting Rescheduled for Sept. 9 ----------------------------------------------------------- The U.S. Trustee has rescheduled for Sept. 9, 2014, at 2:00 p.m. the meeting of creditors of Iowa Gaming Co. LLC at the Office of the U.S. Trustee, Meeting Room, Suite 501, 833 Chestnut Street, Philadelphia, PA 19107. As reported by the Troubled Company Reporter on Aug. 5, 2014, the U.S. Trustee first scheduled the meeting for June 24, 2014, at 2:00 p.m. The meeting was later set for Aug. 5, 2014, at 1:00 p.m. and thereafter adjourned sine die. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. On June 5, 2014, Hon. Richard E. Fehling of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania granted the Debtors permission to employ Weinhardt & Logan, PC., as litigation co- counsel. As reported by the Troubled Company Reporter on May 20, 2014, W&L has represented the Debtors since October 2012 in prepetition litigation related to Belle's gaming license. Postpetition, W&L has agreed to, among other things, continue assisting and advising the Debtors with respect to litigation matters including and relating to the Debtors' prepetition litigation in Iowa. About Iowa Gaming Iowa Gaming Company, LLC, and Belle of Sioux City, L.P., sought Chapter 11 protection (Bankr. E.D. Pa. Lead Case No. 14-13904) in Reading, Pennsylvania, on May 14, 2014 following a decision by the Iowa Racing and Gaming Commission to close down Belle's casino by July 2014. Belle of Sioux City has owned and operated the Argosy riverboat casino in Sioux City, Iowa since 1994. Iowa Gaming is Belle's general partner, and it is an indirect subsidiary of Penn National Gaming, Inc. Iowa Gaming and Penn manage Belle, and they operate out of Penn's corporate offices located in Wyomissing, Pennsylvania. The Debtors have tapped Stevens & Lee, P.C. as counsel; Quinn Emanuel Urquhart & Sullivan, LLP, as co-counsel; and Province, Inc. as financial advisor. In their schedules, Iowa Gaming disclosed $57,866,300 in total assets and $4,710,258 in total liabilities, while Belle disclosed $58,450,809 in total assets and $4,710,258 in total liabilities. According to Belle's financial records, Belle has an intercompany receivable of $47 million from Penn National. IOWA GAMING: Court Denies Iowa Racing's Case Dismissal Motion ------------------------------------------------------------- The Hon. Richard E. Fehling of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania has denied Iowa Racing and Gaming Commission, Missouri River Historical Development and SCE Partners, LLC's motion to dismiss Iowa Gaming Company, LLC, et al.'s bankruptcy case. As reported by the Troubled Company Reporter on June 5, 2014, Bloomberg News bankruptcy columnist Bill Rochelle reported that Iowa gambling regulators asked U.S. Bankruptcy Judge Richard E. Fehling to dismiss Iowa Gaming Co.'s bankruptcy case because it was filed in bad faith. On June 5, 2014, the Debtors objected to the dismissal motion, saying that, among other things, "this bankruptcy has no effect on any other pending litigation in Iowa, save to stay the closing of the Argosy Casino pending completion of judicial review of the April 17 ruling. It does not impact at all the four existing petitions for review, which all concern the antics of the IRGC, MRHD, and SCE to give SCE a license to a land-based casino. Moreover, the Debtors are not asking this Court to determine any of the issues in the petition for review of the IRGC's April 17 ruling, which the Debtors filed on June 5, 2014; those issues will also be decided by the Iowa courts. This bankruptcy does not stay, interfere with, or prevent SCE from continuing to build its competing casino or honoring contracts, which it has been doing since the Petition Date, and has done for years in the face of substantial litigation risk that SCE has knowingly undertaken." A copy of the objection is available for free at: http://bankrupt.com/misc/IOWAGAMING_154_dismissalobj.pdf Automatic Stay On May 27, 2014, the IRGC, MRHD, and SCE objected to the Debtors' consolidated motion for stay, application of the U.S. Bankruptcy Code Section 108(A), and preliminary injuction, saying that an injunction will harm the efforts of Sioux City to redevelop the downtown Sioux City. Sioux City has expended considerable resources to revitalize downtown Sioux City around the Hard Rock Casino, including the issuance of $22 million in municipal bonds to support the SCE Hard Rock Casino project. In a court filing dated May 27, 2014, IRGC, MRHD, and SCE said the Debtors do not have a legitimate need for reorganization or liquidation. They have failed to promptly pursue judicial review or seek interim stays pending final review in Iowa. A copy of their memorandum of points and authorities is available for free at: http://bankrupt.com/misc/IOWAGAMING_119_dismissalmemo.pdf A copy of the objection is available for free at: http://bankrupt.com/misc/IOWAGAMING_118_stayobj.pdf The Court denied on June 11, 2014, the Debtors' motion for a determination of the applicability of the stays to the Debtors' license in Iowa to conduct gambling. On June 25, 2014, the Debtors filed a notice of appeal of the order denying the Debtors' motion for entry of an order determining that the threatened non-renewal of the Debtors' license and closure of the Debtors' business are stayed by either the automatic stay or by operation of Bankruptcy Code Section 108(a) and Iowa Code Section 17A.18(2). The notice seeks review of the court order to the extent it determined that the automatic stay does not apply to the July 1, 2014 casino closure date imposed by the IRGC order. The Debtors are continuing to prosecute their appeal of that portion of the Bankruptcy Court order. On July 25, 2014, the Iowa Supreme Court (i) denied the application of Belle of Sioux City, LP, for a stay pending appeal of the order dated July 14, 2014, denying Belle's petition for review of the order of the IRGC dated April 17, 2014, and (ii) lifted, as of July 30, 2014, an emergency stay which had been previously granted by the Iowa Supreme Court. As a result of the entry of the Supreme Court stay order, the Agrosy Casino has closed and its casino operations have been terminated. However, Belle is continuing to pursue its appeal of the District Court order. On Aug. 4, the Court ordered that the Parties file by Aug. 6, 2014, a stipulation regarding (i) whether the Debtors have ceased operations and closed the Argosy Casino; (ii) whether the Debtors are continuing to press their appeal of the June 11, 2014 order denying the Debtors' motion for a determination of the applicability of the stays to the Debtors' license in Iowa to conduct gambling. On Aug. 6, 2014, the Debtors, the State of Iowa and IRGC, MRHD, and SCE filed the Stipulation. If the Stipulation were not filed by the deadline, a hearing would be held on the status of the joint motions to dismiss at 11:00 a.m., previaling time, on Aug. 11, 2014. The Debtors said in a court filing dated Aug. 6, 2014, that the motion to dismiss their cases should not be decided as long as the appeal of the Bankruptcy Court order remains pending. The counsel to the State of Iowa and IRGC can be reached at: Ciardi Ciardi & Astin Albert A. Ciardi, III, Esq. Marnie E. Simon, Esq. Jennifer C. McEntee, Esq. Adrienne N. Anderson, Esq. One Commerce Square Philadelphia, Pennsylvania 19103 Tel: (215) 557-3550 E-mail: aciardi@ciardilaw.com msimon@ciardilaw.com jcranston@ciardilaw.com aanderson@ciardilaw.com MRHD can be reached at: Fox Rothschild Michael G. Menkowiz, Esq. Samuel H. Israel, Esq. 2000 Market Street, 20th Floor Philadelphia, Pennsylvania 19103 Tel: (215) 299-2000 E-mail: mmenkowitz@foxrothschild.com sisrael@foxrothschild.com and Lane & Waterman LLP Richard A. Davidson, Esq. 220 North Main Street, Suite 600 Davenport, Iowa 52801-1987 SCE can be reached at: Klehr, Harrison, Harvey Branzburg LLP Morton R. Branzburg, Esq. 1835 Market Street, Suite 1400 Philadelphia, Pennsylvania 19103 Tel: (215) 569-2700 Fax: (215) 568-6603 E-mail: mbranzburg@klehr.com and Kirkland & Ellis LLP Mark Holscher, Esq. Jeffrey S. Sinek, Esq. 333 Hope Street Los Angeles, California 90071 Tel: (213) 680-8400 E-mail: mark.holscher@kirkland.com jeff.sinek@kirkland.com and Kirkland & Ellis LLP David R. Seligman, P.C. Ray C. Schrock, P.C. 300 North LaSalle Chicago, Illinois 60654 Tel: (312) 862-2000 E-mail: david.seligman@kirkland.com ray.schrock@kirkland.com and Grefe & Sidney, P.L.C. Guy R. Cook, Esq. 500 East Court Avenue Des Moines, Iowa 50309 Tel: (515) 245-4300 E-mail: gcook@grefesidney.com About Iowa Gaming Iowa Gaming Company, LLC, and Belle of Sioux City, L.P., sought Chapter 11 protection (Bankr. E.D. Pa. Lead Case No. 14-13904) in Reading, Pennsylvania, on May 14, 2014 following a decision by the Iowa Racing and Gaming Commission to close down Belle's casino by July 2014. Belle of Sioux City has owned and operated the Argosy riverboat casino in Sioux City, Iowa since 1994. Iowa Gaming is Belle's general partner, and it is an indirect subsidiary of Penn National Gaming, Inc. Iowa Gaming and Penn manage Belle, and they operate out of Penn's corporate offices located in Wyomissing, Pennsylvania. The Debtors have tapped Stevens & Lee, P.C. as counsel; Quinn Emanuel Urquhart & Sullivan, LLP, as co-counsel; and Province, Inc. as financial advisor. In their schedules, Iowa Gaming disclosed $57,866,300 in total assets and $4,710,258 in total liabilities, while Belle disclosed $58,450,809 in total assets and $4,710,258 in total liabilities. According to Belle's financial records, Belle has an intercompany receivable of $47 million from Penn National. J&J SPOT HOLDING: Case Summary & Unsecured Creditor --------------------------------------------------- Debtor: J&J Spot Holding Inc. 850 North Broadway North White Plains, NY 10603 Case No.: 14-23129 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: August 7, 2014 Court: United States Bankruptcy Court Southern District of New York (White Plains) Judge: Hon. Robert D. Drain Debtor's Counsel: Steven D. Hamburg, Esq. STEVEN D. HAMBURG 2736 Independence Avenue, Suite 1H Bronx, NY 10463 Tel: (917) 885-8275 Email: kshamburg@optonline.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $100,000 to $500,000 The petition was signed by Joseph Macellaro, vice president. The Debtor listed NY State Dept. of Tax & Finance as its largest unsecured creditor holding a claim of $8,000. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/nysb14-23129.pdf JACKSONVILLE BANCORP: Posts $507,000 Net Income in 2nd Quarter -------------------------------------------------------------- Jacksonville Bancorp, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $507,000 on $5.53 million of total interest income for the three months ended June 30, 2014, as compared with net income of $29,000 on $5.79 million of total interest income for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income of $533,000 on $10.65 million of total interest income as compared with net income of $228,000 on $12.15 million of total interest income for the same period in 2013. As of June 30, 2014, the Company had $494.63 million in total assets, $459.11 million in total liabilities and $35.52 million in total shareholders' equity. "We continue to execute a clear strategy and remain encouraged by the ongoing economic improvement in the Northeast Florida market," said Chief Executive Officer Kendall L. Spencer. "While disappointed in the slight uptick in non-performing assets, we are extremely encouraged about the significant reduction in past due loans which is a clear indication of the health of our customers and their ability to service their loans. Our core earnings are stabilized and momentum is building as we continue to focus on earning opportunities and strong expense controls." A full-text copy of the Form 10-Q is available for free at: http://is.gd/EbWjyV 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. JAZZ PHARMACEUTICALS: S&P Rates $500MM Unsec. Notes Due 2021 'B+' ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' issue-level rating to the $500 million of senior unsecured exchangeable notes maturing 2021 issued by Jazz Investments I Ltd. and guaranteed by Jazz Pharmaceuticals plc. The recovery rating on these unsecured obligations is '6', reflecting S&P's expectation for negligible (0%-10%) recovery in the event of default. S&P expects the company to use part of the proceeds to pay down amounts outstanding on the revolver and to use the remainder for general corporate purposes including potential business development activities. Although this issuance modestly increases S&P's estimate of 2014 debt leverage to about 2.5x from around 2.1x, its corporate credit rating remains unchanged, as debt leverage continues to remain within the range (2x to 3x) S&P views as consistent with an "intermediate" financial risk score. The company's "weak" business risk profile reflects the high degree of product and therapeutic concentration. S&P estimates Xyrem will represent about 65% to 70% of 2014 revenues, while the top two products (Xyrem and Erwinaze) will represent around 80% to 85% of 2014 revenues. Although S&P believes the company's range of use, formulation, and distribution patents on Xyrem are not generally as strong as patents relating to the composition of the pharmaceutical molecule, the company has a variety of such patents protecting Xyrem from generic competition. While multiple generic drug companies have challenged the validity of Jazz's patents on Xyrem and a trial may occur in early 2015, S&P's base-case expectation assumes no impact through 2016. RATINGS LIST Jazz Pharmaceuticals plc Corporate Credit Rating BB/Stable/-- New Rating Jazz Investments I Ltd. $500M sr unsecured exchangeable notes B+ due 2021 Recovery rating 6 JUPITER RESOURCES: Moody's Withdraws 'B3' Senior Unsecured Rating ----------------------------------------------------------------- Moody's Investors Service has withdrawn the B3 rating of Jupiter Resources Inc.'s proposed US$1.1 billion of senior unsecured notes. The withdrawal of the B3 rating on the notes follows Jupiter's announcement that due to adverse market conditions, the company has elected to postpone the offering of the notes. The B2 Corporate Family Rating (CFR), B2-PD Probability of Default Rating and Speculative Liquidity Rating of SGL-3 were unchanged. Issuer: Jupiter Resources Inc. Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated B3 Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated a range of LGD4, 67 % Ratings Rationale Jupiter's B2 Corporate Family Rating (CFR) is driven by weak cash flow leverage metrics, cash margin and leveraged full-cycle ratio, all reflecting Jupiter's high percentage of dry gas and ethane production, which comes from a single field. While Encana has a long operating history in the Big Horn field, Moody's believes there are some execution risks to Jupiter's own, more aggressive, development plans for the asset. As well, Jupiter is a newly- formed management team that is in the process of developing a corporate infrastructure, although Encana's field personnel will largely remain in place. Jupiter's size and scale is above average for its rating. The stable outlook reflects Moody's expectation that Jupiter will increase its production and reserves base by 2016 while maintaining adequate leverage metrics. The ratings could be upgraded if Jupiter establishes itself as a corporate entity with a rising production trend, and the company maintains retained cash flow to debt above 20% with the leveraged full-cycle ratio trending towards 1.5x. The ratings could be downgraded if production declines materially, retained cash flow to debt appears likely to remain below 10% or if liquidity weakens. Jupiter is a privately owned oil and gas exploration and production company, headquartered in Calgary, Alberta, with total proved reserves of about 1.1 trillion cubic feet equivalent and current net average daily production of around 300 million cubic feet equivalent per day. LEO MOTORS: Sells $961,540 of Convertible Promissory Notes ---------------------------------------------------------- Leo Motors, Inc., sold three convertible promissory notes for an aggregate principal amount of $961,540 to two Korean accredited investors pursuant to a Securities Purchase Agreement on July 31, 2014. Each note has a maturity date which is three years after the date of issuance. Each Note has an interest rate of four percent per annum. Each note is convertible into restricted shares of the Company's common stock at any time on the date that is three months after the date that Note was issued at an exercise price equal to $0.10 per share, which may be adjusted, subject to certain terms and conditions, to a price equal to the greater of (i) par value of the Common Stock, or (ii) 75% of the average trading price of the Common Stock for the 3 months immediately preceding the date of conversion. The Company is permitted to repay the Note at any time after the date that is three months after the date of issuance. About Leo Motors Headquartered in Hanam City, Gyeonggi-do, Republic of Korea, Leo Motors, Inc., a Nevada corporation, is currently engaged in the research and development of multiple products, prototypes and conceptualizations based on proprietary, patented and patent pending electric power generation, drive train and storage technologies. In 2011, the Company determined its investment in Leo B&T Inc. an investment account was impaired and recorded an expense of $4.5 million. During the 2012 year the Company had a net non operating income largely from the result of the forgiveness of debt for $1.3 million. Leo Motors reported a net loss of $1.24 million on $0 of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $1.88 million on $25,605 of revenues during the prior year. The Company's balance sheet at March 31, 2014, showed $1.14 million in total assets, $1.80 million in total liabilities and a $656,382 total deficit. John Scrudato CPA, in Califon, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred significant losses since inception of $16,871,850. This and other factors raise substantial doubt about the Company's ability to continue as a going concern. LEVEL 3: Swings to $51-Million Net Income in Second Quarter ----------------------------------------------------------- Level 3 Communications, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended June 30, 2014. The Company disclosed net income of $51 million on $1.62 billion of revenue for the three months ended June 30, 2014, as compared with a net loss of $24 million on $1.56 billion of revenue for the same period during the prior year. The Company also reported net income of $163 million on $3.23 billion of revenue for the six months ended June 30, 2014, as compared with a net loss of $102 million on $3.14 billion of revenue for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $13.02 billion in total assets, $11.34 billion in total liabilities, and $1.67 billion in total stockholders' equity. The Company had $637 million of cash and cash equivalents on hand at June 30, 2014. A full-text copy of the Form 10-Q is available for free at: http://is.gd/3uRgVj About Level 3 Communications Headquartered in Broomfield, Colorado, Level 3 Communications, Inc., is a publicly traded international communications company with one of the world's largest communications and Internet backbones. Level 3 incurred a net loss of $109 million in 2013, a net loss of $422 million in 2012, and a net loss of $756 million in 2011. * * * In June 2014, Fitch Ratings upgraded the Issuer Default Rating (IDR) assigned to Level 3 Communications, Inc. (LVLT) and its wholly owned subsidiary Level 3 Financing, Inc. (Level 3 Financing) to 'B+' from 'B'. "The upgrade of LVLT's ratings is supported by the continued strengthening of the company's credit profile since the close of the Global Crossing Limited (GLBC) acquisition, positive operating momentum evidenced by expanding gross and EBITDA margins, and ongoing revenue growth within the company's Core Network Services (CNS) segment and its position to generate meaning FCF," Fitch stated. In June 2013, Standard & Poor's Ratings Services raised its corporate credit rating on Level 3 to 'B' from 'B-'. "The upgrade reflects improved debt leverage, initially from the acquisition of the lower-leveraged Global Crossing in October 2011, and subsequently from realization of the bulk of what the company expects to eventually be $300 million of annual operating synergies," said Standard & Poor's credit analyst Richard Siderman. LEVEL 3: TW Telecom Posts $36.4 Million Net Income in 2013 ---------------------------------------------------------- As previously announced, on June 15, 2014, Level 3 Communications, Inc., entered into a definitive agreement to acquire tw telecom inc. in a stock-and-cash transaction. Completion of the tw telecom transaction is subject to, among other things, approval by Level 3 stockholders and tw telecom stockholders. Level 3 expects the tw telecom transaction to occur before the end of 2014, although there can be no assurance as to whether or when the transaction will be completed. On Aug. 7, 2014, Level 3 filed with the U.S. Securities and Exchange Commission the annual report of tw telecom for the year ended Dec. 31, 2013. tw telecom reported net income of $36.45 million on $1.56 billion of total revenue in 2013, net income of $76.88 million in 2012, and net income of $57.91 million in 2011. As of Dec. 31, 2013, the Company had $2.92 billion in total assets, $2.28 billion in total liabilities and $636.06 million in total stockholders' equity. A full-text copy of tw telecom's Annual Report is available at: http://is.gd/Tmawpu About Level 3 Communications Headquartered in Broomfield, Colorado, Level 3 Communications, Inc., is a publicly traded international communications company with one of the world's largest communications and Internet backbones. Level 3 incurred a net loss of $109 million in 2013, a net loss of $422 million in 2012, and a net loss of $756 million in 2011. The Company's balance sheet at June 30, 2014, showed $13.02 billion in total assets, $11.34 billion in total liabilities, and $1.67 billion in stockholders' equity. * * * In June 2014, Fitch Ratings upgraded the Issuer Default Rating (IDR) assigned to Level 3 Communications, Inc. (LVLT) and its wholly owned subsidiary Level 3 Financing, Inc. (Level 3 Financing) to 'B+' from 'B'. "The upgrade of LVLT's ratings is supported by the continued strengthening of the company's credit profile since the close of the Global Crossing Limited (GLBC) acquisition, positive operating momentum evidenced by expanding gross and EBITDA margins, and ongoing revenue growth within the company's Core Network Services (CNS) segment and its position to generate meaning FCF," Fitch stated. In June 2013, Standard & Poor's Ratings Services raised its corporate credit rating on Level 3 to 'B' from 'B-'. "The upgrade reflects improved debt leverage, initially from the acquisition of the lower-leveraged Global Crossing in October 2011, and subsequently from realization of the bulk of what the company expects to eventually be $300 million of annual operating synergies," said Standard & Poor's credit analyst Richard Siderman. LONGVIEW POWER: Wants $825MM Policy Fight Kept In Bankruptcy ------------------------------------------------------------ Law360 reported that coal plant operator Longview Power LLC told a Delaware bankruptcy judge that its suit over an $825 million insurance policy needs to remain before the court because the outcome is crucial to the successful resolution of its Chapter 11 case. According to the report, Longview -- which filed an adversary complaint seeking a declaration that coverage is available under the policy from First American Title Insurance Co. policy and that proceeds are property of the estate -- urged U.S. Bankruptcy Judge Brendan L. Shannon to declare the matter as "core proceeding." About Longview Power LLC Longview Power LLC is a special purpose entity created to construct, own, and operate a 695 MW supercritical pulverized coal-fired power plant located in Maidsville, West Virginia, just south of the Pennsylvania border and approximately 70 miles south of Pittsburgh. The project is owned 92% by First Reserve Corporation (First Reserve or sponsor), a private equity firm specializing in energy industry investments, through its affiliate GenPower Holdings (Delaware), L.P., and 8% by minority interests. Longview Power, LLC, filed a Chapter 11 (Bank. D. Del. Lead Case. 13-12211) on Aug. 30, 2013. The petitions were signed by Jeffery L. Keffer, the Company's chief executive officer, president, treasurer and secretary. The Debtor estimated assets and debts of more than $1 billion. Judge Brendan Linehan Shannon presides over the case. Kirkland & Ellis LLP and Richards, Layton & Finger, P.A., serve as the Debtors' counsel. Lazard Freres & Company LLC acts as the Debtors' investment bankers. Alvarez & Marsal North America, LLC, is the Debtors' restructuring advisors. Ernst & Young serves as the Debtors' accountants. The Debtors' claims agent is Donlin, Recano & Co. Inc. The Debtor disclosed assets of $1,717,906,595 plus undisclosed amounts and liabilities of $1,075,748,155 plus undisclosed amounts. Roberta A. DeAngelis, U.S. Trustee for Region 3, disclosed that as of September 11, 2013, a committee of unsecured creditors has not been appointed in the case due to insufficient response to the U.S. Trustee's communication/contact for service on the committee. LOT POLISH: EU Approves $260M Aid For Struggling Airline -------------------------------------------------------- Law360 reported that the European Commission has approved Poland's plan to aid struggling airline LOT, the country's flagship carrier, with EUR193.6 ($259.6 million) to support a restructuring program intended to stave off bankruptcy, ruling the money will not unduly distort competition. According to the report, LOT's restructuring plan calls for giving up some profitable routes and slots at congested airports, factors the EC said demonstrate the aid is not designed to give the airline an unfair edge over European competitors, thus complying with European Union state aid rules. Polskie Linie Lotnicze LOT S.A., trading as LOT Polish Airlines, is the flag carrier of Poland. Based in Warsaw, LOT was established in 1929, making it one of the world's oldest airlines still in operation. Using a fleet of 55 aircraft, LOT operates a complex network to 60 destinations in Europe, the Middle East, North America, and Asia. Most of the destinations are served from its hub, Warsaw Chopin Airport. LPATH INC: Incurs $3.7 Million Net Loss in Second Quarter --------------------------------------------------------- LPath, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.72 million on $1.33 million of total revenues for the three months ended June 30, 2014, as compared with a net loss of $1.38 million on $2.01 million of total revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $7.02 million on $3.05 million of total revenues as compared with a net loss of $2.63 million on $3.12 million of total revenues for the same period last year. As of June 30, 2014, the Company had $18.40 million in total assets, $5.26 billion in total liabilities and $13.14 million in total stockholders' equity. As of June 30, 2014, Lpath had cash and cash equivalents totaling $14.3 million. "Until we can generate significant cash from operations, we expect to continue to fund our operations with cash resources generated from a combination of NIH grants, license agreements, and the proceeds of offerings of our equity and debt securities. However, we may not be successful in obtaining funding from new or existing collaboration agreements or licenses, or in receiving milestone or royalty payments under those agreements. In addition, we cannot be sure that additional financing will be available when needed or that, if available, financing will be obtained on terms favorable to us or to our stockholders." "Having insufficient funds may require us to delay, scale back, or eliminate some or all of our development programs, relinquish some or even all rights to product candidates at an earlier stage of development, or renegotiate less favorable terms than we would otherwise choose. Failure to obtain adequate financing could eventually adversely affect our ability to operate as a going concern. If we raise additional funds from the issuance of equity securities, substantial dilution to our existing stockholders would likely result. If we raise additional funds by incurring debt financing, the terms of the debt may involve significant cash payment obligations as well as covenants and specific financial ratios that may restrict our ability to operate our business," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/vjq1wY About Lpath, Inc. San Diego, Calif.-based Lpath, Inc. is a biotechnology company focused on the discovery and development of lipidomic-based therapeutics, an emerging field of medical science whereby bioactive lipids are targeted to treat human diseases. LPath reported a net loss of $6.56 million in 2013, a net loss of $2.75 million in 2012 and a net loss of $3.11 million in 2011. MACHINING PROGRAMMING: Case Summary & 9 Top Unsecured Creditors --------------------------------------------------------------- Debtor: Machining Programming Manufacturing Inc. aka MPM Inc 2100 S West Street Wichita, KS 67213-1112 Case No.: 14-11836 Chapter 11 Petition Date: August 7, 2014 Court: United States Bankruptcy Court District of Kansas (Wichita) Judge: Hon. Robert E. Nugent Debtor's Counsel: Christopher W. O'Brien, Esq. BROWN, DENGLER & O'BRIEN, LLC 1938 N. Woodlawn, Ste. 405 Wichita, KS 67208 Tel: (316) 260-9720 Fax: (316) 260-8867 Email: cobrien@bdolaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Don Gorges, president. A list of the Debtor's nine largest unsecured creditors is available for free at http://bankrupt.com/misc/ksb14-11836.pdf MCCLATCHY CO: Agrees to Sell 25.6% Stake in Cars.com to Gannett --------------------------------------------------------------- The McClatchy Company said that it, along with the remaining partners in Classified Ventures, LLC (CV), have entered into a definitive agreement to sell their entire stake in CV to Gannett Co., Inc. (NYSE-GCI) for a price that values CV at $2.5 billion. The transaction is expected to close before the end of 2014, subject to normal regulatory reviews. In connection with the Sale, McClatchy will enter into a five-year affiliation agreement with CV that will allow McClatchy to continue to resell Cars.com products and services exclusively in its local market. The affiliation agreement will increase the wholesale rate that McClatchy will pay to CV in connection with the sale of Cars.com products and services. CV, whose primary asset is the online car shopping Web site Cars.com, is a joint venture among McClatchy, Gannett, Tribune Media Company, Graham Holdings Company and A. H. Belo Corporation. McClatchy owns 25.6% of CV. CV was valued at $2.5 billion for purposes of the transaction, which represents a multiple of 14.6 times 2014 EBITDA of $171 million pro forma for the impact of the new affiliate agreements. Gross proceeds to selling partners are expected to be $1.8 billion and McClatchy estimates its share of pre-tax, cash proceeds will be $640 million. After-tax proceeds are anticipated to be approximately $406 million. McClatchy expects to record a gain on the sale of its interest in CV in the quarter that the deal closes. Upon closing of the transaction, McClatchy, Tribune Publishing Company, The Washington Post and A. H. Belo will enter into a new, five-year affiliate agreement with Cars.com that will allow each company to continue to sell Cars.com products and services exclusively in their local markets. The affiliate agreement increases the wholesale rate at which the affiliates will purchase Cars.com products. Commenting on the announcement, Pat Talamantes, McClatchy's president and CEO, said, "Cars.com is a shining example of what the newspaper industry can accomplish working together. We joined forces and from scratch developed a highly successful internet company that has benefited consumers, auto advertisers, our individual companies and our shareholders. After 17 years, the time is right for an ownership change. We're happy to monetize a valuable digital asset and feel great that Gannett, our long-term partner in CV, will continue to innovate in order to grow the company and move it forward. "This is a significant transaction for our company and its shareholders, and we are very pleased with how it came together. We received a great price that reflects the strength of the Cars.com franchise while maintaining the right to sell its products and services to our customers. This transaction will provide funding for the continuing digital transformation of McClatchy, including the ability to find other exciting digital investments. It will allow us to continue to pay down debt and will generate liquidity for other uses as determined by management and our board of directors." Talamantes added, "We will continue to provide highly-effective digital sales and marketing tools to the automotive advertisers in each of our markets and we look forward to our continued partnership with them. Our commitment to grow our Cars.com business remains as strong as ever. We are proud that McClatchy has some of the best Cars.com sales professionals in the country. Our new affiliate agreement offers us the flexibility to provide the products and appropriate pricing for Cars.com to each market while leveraging our experienced and energized sales force that knows how to get the best results from these products for advertisers. We believe this is a great outcome for our local auto advertisers." McClatchy noted that under its bond indenture for its 2022 senior secured notes it plans to offer the after-tax proceeds from this transaction, to the extent that they are not reinvested within 365 days of the closing of the transaction, in an offering to repurchase those bonds at par. As of noon Pacific time yesterday those bonds were trading at premium prices ranging between $109 and $109.625. McClatchy's pro forma cash as of the end of the second quarter, reflecting the CV transaction and excluding expected tax payments for all recent transactions, is expected to be $606 million. Moelis & Company is acting as the financial advisor and Skadden, Arps, Slate, Meagher & Flom is acting as legal advisor to the selling partners on the transaction. A full-text copy of the Unit Purchase Agreement is available at: http://is.gd/rrT14B About McClatchy The McClatchy Company is a news and information provider, offering a wide array of print and digital products in each of the markets it serves. McClatchy's operations include 29 daily newspapers, community newspapers, Web sites, mobile news and advertising, niche publications, direct marketing and direct mail services. The company's largest newspapers include the (Fort Worth) Star- Telegram, The Sacramento Bee, The Kansas City Star, the Miami Herald, The Charlotte Observer and The (Raleigh) News & Observer. McClatchy is listed on the New York Stock Exchange under the symbol MNI. The Company reported net income of $18.80 million for the year ended Dec. 29, 2013, as compared with a net loss of $144,000 for the year ended Dec. 30, 2012. As of Dec. 29, 2013, the Company had $2.61 billion in total assets, $2.37 billion in total liabilities, and $240.38 million in stockholders' equity. * * * McClatchy carries a 'Caa1' corporate family rating from Moody's Investors Service. In May 2011, Moody's changed the rating outlook from stable to positive following the company's announcement that it closed on the sale of land in Miami for $236 million. The outlook change reflects Moody's expectation that McClatchy will utilize the net proceeds to reduce debt, including its underfunded pension position, which will reduce leverage by approximately half a turn and lower required contributions to the pension plan over the next few years. McClatchy Co. carries a 'B-' Corporate Credit Rating from Standard & Poor's Ratings Services. As reported by the TCR on April 2, 2014, Standard & Poor's Ratings Services affirmed all ratings on U.S. newspaper company The McClatchy Co., including the 'B-' corporate credit rating, and revised the rating outlook to stable from positive. The outlook revision to stable reflects S&P's expectation that the timeframe for a potential upgrade lies beyond the next 12 months, and could also depend on the company realizing value from its digital minority interests. METRO AFFILIATES: Can't Duck Severance Claims --------------------------------------------- Law360 reported that a New York bankruptcy judge rebuffed a bid by school bus and charter bus operator Atlantic Express Transportation Corp. to get rid of former employees' claims for severance pay, saying it's unclear whether such compensation was promised to certain workers. According to the report, U.S. Bankruptcy Judge Sean H. Lane said there is conflicting evidence regarding whether Atlantic Express senior management told some nonunion workers they were eligible for participation in an informal severance program in which employees would receive one week's pay for every two years of work they did for the company. About Metro Affiliates Staten Island, New York-based Metro Affiliates, Inc., and its subsidiaries sought protection under Chapter 11 of the Bankruptcy Code on Nov. 4, 2013 (Bankr. S.D.N.Y. Case No. 13-13591). The case is assigned to Judge Sean Lane. In its schedules, Metro Affiliates disclosed $14,438,351 in total assets and $163,562,007 total liabilities. Lisa G. Beckerman, Esq., and Rachel Ehrlich Albanese, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York; and Scott L. Alberino, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Washington, D.C., represent the Debtors. Silverman Shin & Byrne PLLC serves as special counsel. Rothschild Inc. serves as the Debtors' investment banker, while Kurtzman Carson Consultants LLC serves as their claims and noticing agent. The Joint Chapter 11 Plan of Liquidation filed by Metro Affiliates, Inc. and its debtor affiliates embodies a global settlement among the Debtors, the Creditors Committee, Wells Fargo and Wayzata for a fair allocation of the Debtors' remaining assets. Wayzata holds a substantial majority of the Debtors' Notes. Among other things, the Settlement provides that proceeds of the Noteholders' Collateral will be used to pay certain administrative expenses. The Plan creates a trust for unsecured creditors who are given the right to pursue lawsuits. Recoveries will be shared, with 70% going to noteholders on their remaining claim of $14.3 million and 30% earmarked for other unsecured creditors. On June 11, 2014, the U.S. Bankruptcy Court entered its Findings of Fact, Conclusions of Law, and Order Confirming First Amended Joint Chapter 11 Plan of Liquidation for the Debtors. Wells Fargo Bank, National Association, as agent for a consortium of DIP lenders, is represented by Jonathan N. Helfat, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C., in New York. The Bank of New York Mellon as indenture trustee and collateral agent for prepetition noteholders, is represented by James Gadsden, Esq., at Carter, Ledyard & Milburn LLP, in New York. Certain Noteholders are represented by Kristopher M. Hansen, Esq., at Stroock & Stroock & Lavan LLP, in New York. The U.S. appointed a three-member official committee of unsecured creditors represented by Farrell Fritz, P.C. PricewaterhouseCoopers LLP serves as the Committee's Financial advisors. This is Metro Affiliates' third trip to Chapter 11. The Company, together with its subsidiaries, previously sought protection under Chapter 11 of the Bankruptcy Code on Aug. 16, 2002 (In re Metro Affiliates, Inc., Case No. 02-42560 (PCB), Bankr. S.D.N.Y.). A plan in the second Chapter 11 case was confirmed in September 2003. The first bankruptcy was in 1994. MICHAEL BAKER: Moody's Assigns 'B2' Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service has assigned a B2 Corporate Family Rating and B2-PD Probability of Default Rating to Michael Baker Holdings LLC and withdrawn the B2 CFR and B2-PD PDR of Michael Baker International, LLC. All instrument ratings of the corporate family have been affirmed. The relocation of the CFR and PDR reflects the April issuance of $150 million pay-in-kind notes due 2019 at Michael Baker, the corporate family's highest ranking entity. Michael Baker Holdings LLC Ratings assigned: Corporate Family, B2 Probability of Default, B2-PD Ratings affirmed: $150 million PIK Notes due 2019, Caa1, LGD6 Rating Outlook: continues at Negative Michael Baker International, LLC Ratings withdrawn: Corporate Family, B2 Probability of Default, B2-PD Ratings affirmed: $350 million Senior Secured Notes due 2018, B1, LGD3 Rating Outlook: continues at Negative Ratings Rationale The B2 CFR balances high financial leverage (about 6x pro forma for the April 2014 PIK note issuance), integration risks and limited performance visibility from the company's rapid growth through acquisition, against a good backlog level. The negative rating outlook reflects an anticipated soft 2014 FCF/debt ratio of about 5% or less and a rather limited degree of liquidity. Michael Baker's leveraged dividend transaction of April was undertaken following $838 million of contract awards to construct/renovate and support operations of the Balad Air Base in Iraq under a U.S. Foreign Military Sales Program arrangement. Clarity regarding the project's construction schedule has lessened with instability in Iraq. Downward rating pressure would develop with a debt to EBITDA level continued at 6x or higher, FCF/debt below 5%, or thinner liquidity. Stabilization of the rating outlook would depend on expectation of debt to EBITDA of 5x, low revolver utilization and an adequate liquidity profile. Upward rating momentum would follow expectation of debt to EBITDA of around 4x, FCF to debt of 10% and a good liquidity profile. Michael Baker Holdings LLC provides engineering, development, intelligence and technology solutions with global reach and mobility. Annual revenues, pro forma for business combinations, were estimated to be $1.1 billion in 2013. The company is majority-owned by DC Capital Partners. The principal methodology used in this rating was Global Aerospace and Defense Industry published in April 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non- Financial Companies in the U.S., Canada and EMEA published in June 2009. MOLYCORP INC: Incurs $84 Million Net Loss in Second Quarter ----------------------------------------------------------- Molycorp, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $83.85 million on $116.90 million of revenues for the three months ended June 30, 2014, as compared with a net loss of $70.68 million on $136.11 million of revenues for the same period last year. The Company also reported a net loss of $169.84 million on $235.43 million of revenues for the six months ended June 30, 2014, as compared with a net loss of $108.84 million on $281.51 million of revenues for the same peiod during the prior year. The Company's balance sheet at June 30, 2014, showed $2.83 billion in total assets, $1.61 billion in total liabilities and $1.21 billion in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Vv0bQO In a separate press release, the Company announced that it has entered into a commitment letter for a $400 million financing arrangement with funds managed by Oaktree Capital Management, L.P. Under the arrangement, Oaktree will provide Molycorp and certain of the Company's subsidiaries up to $400 million in secured financing through credit facilities and the sale and leaseback of certain equipment at the Company's Mountain Pass facility. About $250 million of the Financings will be available to be borrowed at the closing of the Financings, with the remaining $150 million available until April 30, 2016, if Molycorp satisfies certain financial and operational conditions. The closing of the Financings is subject to the satisfaction of certain customary closing conditions. About Molycorp Molycorp is the only advanced material manufacturer in the world that both controls a world-class rare earth resource and can produce high-purity, custom engineered rare earth products to meet increasingly demanding customer specifications. A globally integrated manufacturer, the Company produces a wide variety of specialized products from 13 different rare earths (lights, mids and heavies), the transition metal yttrium, and five rare metals (gallium, indium, rhenium, tantalum and niobium). With 26 locations across 11 countries, Molycorp also produces rare earth magnetic materials through its Molycorp Magnequench subsidiary, including neodymium-iron-boron ("NdFeB") magnet powders, used to manufacture bonded NdFeB permanent rare earth magnets. Through its joint venture with Daido Steel and the Mitsubishi Corporation, Molycorp manufactures next-generation, sintered NdFeB permanent rare earth magnets. The Company also markets and sells a line of rare earth-based water treatment products. For more information please visit http://www.molycorp.com. * * * As reported by the TCR on June 23, 2014, Moody's Investors Service downgraded the corporate family rating (CFR) of Molycorp, Inc. to Caa2 from Caa1. The downgrade reflects continued weakness in rare earths pricing environment, ongoing negative free cash flows, weak liquidity and high leverage. In July, 2014, Standard & Poor's Rating Services lowered its corporate credit rating on Greenwood Village, Colo.-based Molycorp Inc. to 'CCC' from 'CCC+. The downgrade reflects S&P's view of the company's deteriorating liquidity position. MOMENTIVE PERFORMANCE: Can't Use Plan to Dodge Taxes, Feds Say -------------------------------------------------------------- Law360 reported that the U.S. government is afraid that Momentive Performance Materials Inc. will use its proposed Chapter 11 plan to dodge tax liability, asking a U.S. Bankruptcy Court to insert language in the proposal saying the plan cannot be deemed to determine federal tax treatment. According to the report, U.S. Attorney for the Southern District of New York Preet Bharara objected to MPM's plan and asked the court to reinsert language in the plan clarifying that it can't be used to determine the company's tax liability. About Momentive Performance Momentive Performance is one of the world's largest producers of silicones and silicone derivatives, and is a global leader in the development and manufacture of products derived from quartz and specialty ceramics. Momentive has a 70-year history, with its origins as the Advanced Materials business of General Electric Company. In 2006, investment funds affiliated with Apollo Global Management, LLC, acquired the company from GE. As of Dec. 31, 2013, the Company had 4,500 employees worldwide, of which 46% of the Company's employees are members of a labor union or are represented by workers' councils that have collective bargaining agreements. Momentive Performance Materials Inc., Momentive Performance Materials Holdings Inc., and their affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 14-22503) on April 14, 2014, with a deal with noteholders on a balance-sheet restructuring. As of Dec. 31, 2013, the Debtors had $4.114 billion of consolidated outstanding indebtedness, including payments due within the next 12 months and short-term borrowings. The Debtors said that the restructuring will eliminate $3 billion in debt. The Debtors have tapped Willkie Farr & Gallagher LLP as bankruptcy counsel with regard to the filing and prosecution of these chapter 11 cases; Sidley Austin LLP as special litigation counsel; Moelis & Company LLC as financial advisor and investment banker; AlixPartners, LLP as restructuring advisor; PricewaterhouseCoopers as auditor; and Crowe Horwath LLP as benefit plan auditor. Kurtzman Carson Consultants LLC is the notice and claims agent. The U.S. Trustee for Region 2 appointed seven members to serve on the Official Committee of Unsecured Creditors of the Debtors' cases. Klee, Tuchin, Bogdanoff & Stern LLP serves as its counsel. FTI Consulting, Inc., serves as its financial advisor. Rust Consulting Omni Bankruptcy serves as its information agent. MORGANS HOTEL: Incurs $13.7 Million Net Loss in Second Quarter -------------------------------------------------------------- Morgans Hotel Group Co. 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 $13.70 million on $61.44 million of total revenues for the three months ended June 30, 2014, as compared with a net loss attributable to common stockholders of $19.03 million on $60.70 million of total revenues for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss attributable to common stockholders of $42.20 million on $117.07 million of total revenues as compared with a net loss attributable to common stockholders of $33.36 million on $113.35 million of total revenues for the same period during the prior year. As of June 30, 2014, the Company had $684.79 million in total assets, $896.03 million in total liabilities, $5.38 million in redeemable noncontrolling interest and a $216.62 million total deficit. Jason T. Kalisman, interim chief executive officer, stated, "We are pleased with Morgans Hotel Group's continued progress during the second quarter, and believe that our improved results reflect the significant effort over the last year to return the Company to solid footing. With two high-profile properties scheduled to open in the third quarter, and our ongoing commitment to operational excellence, we are confident in Morgans' future prospects as we enter the second half of 2014." At June 30, 2014, the Company had approximately $133 million in cash and cash equivalents. A full-text copy of the Form 10-Q is available for free at: http://is.gd/EOriL0 About Morgans Hotel Group Based in New York, Morgans Hotel Group Co. (Nasdaq: MHGC) -- http://www.morganshotelgroup.com/-- is widely credited as the creator of the first "boutique" hotel and a continuing leader of the hotel industry's boutique sector. Morgans Hotel Group operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles and South Beach, Clift in San Francisco, Ames in Boston, and Sanderson and St Martins Lane in London. Morgans Hotel Group and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans Hotel Group also manages hotels in Isla Verde, Puerto Rico and Playa del Carmen, Mexico. Morgans Hotel Group has other property transactions in various stages of completion, including projects in SoHo, New York and Palm Springs, California. Morgans Hotel reported a net loss attributable to common stockholders of $57.48 million on $236.48 million of total revenues for the year ended Dec. 31, 2013, as compared with a net loss attributable to common stockholders of $66.81 million on $189.91 million of total revenues in 2012. MSR RESORT: Court Rules on Dispute With Conlon Group Arizona ------------------------------------------------------------ Bankruptcy Judge Sean H. Lane ruled on cross-motions for summary judgment filed by MSR Resort Golf Course LLC, et al. and The Conlon Group Arizona, LLC, with respect to their dispute over cure amounts due to Conlon by virtue of the Debtors' assumption of rental pool agreements related to the Arizona Biltmore Hotel. The parties dispute whether any or all of Conlon's present claims for cure damages -- including the so-called Revenue Claims and 17 Percent Claims -- are barred by prior litigation in federal district court in Arizona. In his August 7, 2014 Memorandum of Decision available at http://is.gd/Gypa82from Leagle.com, the Court agrees with the Debtors that Conlon's Revenue Claims are barred by the doctrine of res judicata, but concludes that some -- but not all -- of Conlon's 17 Percent Claims are precluded by collateral estoppel. Counsel to The Conlon Group Arizona, LLC: Stephen W. Tully, Esq. GORDON & REES, LLP 111 W. Monroe St., Ste. 1600 Phoenix, AZ 85003 About MSR Hotels MSR Hotels & Resorts, Inc., returned to Chapter 11 by filing a voluntary bankruptcy petition (Bankr. S.D.N.Y. Case No. 13-11512) on May 8, 2013 in Manhattan, to thwart a lawsuit by lender Five Mile Capital Partners, which claims it is owed tens of millions of dollars related to the sale of several luxury resorts in a prior bankruptcy. MSR Hotels also seeks to sell its remaining assets and wind down. Paul M. Basta, Esq., at Kirkland & Ellis, LLP, represents the 2013 Debtor. MSR Hotels owned a portfolio of eight luxury hotels with over 5,500 guest rooms. On Jan. 28, 2011, CNL-AB LLC acquired the equity interests in the portfolio through a foreclosure proceeding. CNL-AB LLC is a joint venture consisting of affiliates of Paulson & Co. Inc., a joint venture affiliated with Winthrop Realty Trust, and affiliates of Capital Trust, Inc. Morgan Stanley's CNL Hotels & Resorts Inc. owned the resorts before the January 2011 foreclosure. Following the acquisition, five of the resorts with mortgage debt scheduled to mature on Feb. 1, 2011, were sent to Chapter 11 bankruptcy by the Paulson and Winthrop joint venture affiliates. Then known as MSR Resort Golf Course LLC, the company and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-10372) in Manhattan on Feb. 1, 2011. The resorts subject to the 2011 filings were Grand Wailea Resort and Spa, Arizona Biltmore Resort and Spa, La Quinta Resort and Club and PGA West, Doral Golf Resort and Spa, and Claremont Resort and Spa. In the 2011 petitions, the five resorts had $2.2 billion in assets and $1.9 billion in debt as of Nov. 30, 2010. In its 2011 schedules, MSR Resort disclosed $59,399,666 in total assets and $1,013,213,968 in total liabilities. In the 2011 bankruptcy, James H.M. Sprayregen, P.C., Esq., Paul M. Basta, Esq., Edward O. Sassower, Esq., and Chad J. Husnick, Esq., at Kirkland & Ellis, LLP, served as the Debtors' bankruptcy counsel. Houlihan Lokey Capital, Inc., acted as the Debtors' financial advisor. Kurtzman Carson Consultants LLC acted as the Debtors' claims agent. The Official Committee of Unsecured Creditors in the 2011 case was represented by Martin G. Bunin, Esq., and Craig E. Freeman, Esq., at Alston & Bird LLP, in New York. In March 2012, the Debtors won Court approval to sell the Doral Golf Resort to Trump Endeavor 12 LLC, an affiliate of Donald Trump's Trump Organization LLC, for $150 million. An auction was held in February that year but no other bids were received. The 2011 Debtors won approval of a bankruptcy-exit plan that was predicated on the sale of the remaining four resorts by the Government of Singapore Investment Corp. -- the world's eighth- largest sovereign wealth fund, according to the Sovereign Wealth Fund Institute -- for $1.5 billion. U.S. Bankruptcy Judge Sean Lane, who oversaw the 2011 cases, overruled Plan objections by the U.S. Internal Revenue Service and investor Five Mile. The IRS and Five Mile alleged that the sale created a tax liability of as much as $331 million that may not be paid. That Plan was declared effective on Feb. 28, 2013. On April 9, 2013, Five Mile sued Paulson & Co. executives and MSR Hotels in New York state court, alleging they (i) mishandled the company's intellectual property and other assets in a bankruptcy sale, and failed to get the best price for the assets, and (ii) owe Five Mile $58.7 million on a loan. According to a Reuters report, Five Mile seeks $58.7 million representing sums owed, including interest and costs, plus at least $100 million for breach of fiduciary duty, gross negligence and corporate waste. The 2013 Debtor has two critical court dates: a Jan. 30, 2014 auction to locate the best bid for trademarks not sold in the prior bankruptcy; and a Feb. 6 hearing to approval a Chapter 11 plan. In the 2013 case, MSR Hotels originally listed assets of $785,000 and liabilities totaling $59.2 million. Debt at that time included $59.1 million owing to Midland, a secured creditor in the five resorts' bankruptcy. Midland has a lien on the three resorts' trademarks. Other than the trademarks, MSR Hotels' other assets were listed as being $150,000 in unrestricted cash. The company has no operations. Revenue in 2012 was $32,500, according to a court filing. N-VIRO INTERNATIONAL: Incurs $440,000 Net Loss in First Quarter --------------------------------------------------------------- N-Viro International Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $440,084 on $523,588 of revenues for the three months ended March 31, 2014, as compared with a net loss of $625,880 on $783,204 of revenues for the same period in 2013. As of March 31, 2014, the Company had $1.47 million in total assets, $2.37 million in total liabilities and a $896,224 total stockholders' deficit. "Between April and July 2014, a total of $242,500 in cash has been received from the issuance of stock in private placements, and another $55,000 in debt was converted to equity. For the remainder of 2014, we expect to maintain current operating results and have adequate cash or access to cash to adequately fund operations from cash generated from equity issuances and exercises of outstanding warrants and options, and by focusing on existing and expected new sources of revenue, especially from our new processing facility in Bradley. We expect that market developments favoring cleaner burning renewable energy sources and ongoing discussions with companies in the fuel and wastewater industries could provide enhanced liquidity and have a positive impact on future operations. We continue to pursue opportunities with strategic partners for the development and commercialization of the N-Viro Fuel technology both domestically and internationally. In addition, we are focusing on the development of regional biosolids processing facilities, and are currently in negotiations with potential partners to permit and develop independent, regional facilities." "There can be no assurance these discussions will be successful or result in new revenue or cash funding sources for the company. Our failure to achieve improvements in operating results, including through these potential sources of revenue, or in our ability to adequately finance or secure additional sources of funds would likely have a material adverse effect on our continuing operations," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/VXS50w About N-Viro International Toledo, Ohio-based N-Viro International Corporation owns and sometimes licenses various N-Viro processes and patented technologies to treat and recycle wastewater and other bio-organic wastes, utilizing certain alkaline and mineral by-products produced by the cement, lime, electrical generation and other industries. N-Viro International reported a net loss of $1.64 million on $3.37 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $1.63 million on $3.58 million of revenues during the prior year. UHY LLP, in Farmington Hills, Michigan, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's recurring losses, negative cash flow from operations and net working capital deficiency raise substantial doubt about its ability to continue as a going concern. NATROL INC: Gets Nod for Cerberus Settlement -------------------------------------------- Law360 reported that a Delaware bankruptcy judge blessed a settlement between nutritional supplement maker Natrol Inc. and private equity lender Cerberus Business Finance LLC, removing the specter of litigation that threatened to bog down the vitamin company's reorganization plans. According to the report, at a hearing in Wilmington, Delaware, U.S. Bankruptcy Judge Brendan L. Shannon signed off on the agreement, which lets Natrol tap the secured lender's cash collateral to fund operations and sees Cerberus drop its bid to have a trustee take control of the Chapter 11 case. About Natrol, Inc. Headquartered in Chatsworth, Calif., Natrol, Inc. -- http://www.natrol.com-- is a wholly owned subsidiary of Plethico Pharmaceuticals Limited. Plethico Pharmaceuticals Limited (BSE: 532739. BO: PLETHICO) engages in the manufacturing, marketing and distribution of pharmaceutical and allied healthcare products around the world. Natrol products are made in the U.S. Established in 1980, Natrol, Inc. has been a global leader in the nutrition industry, and a trusted manufacturer and marketer of a superior quality of herbs and botanicals, multivitamins, specialty and sports nutrition supplements made to support health and wellness throughout all ages and stages of life. Natrol products are available in health food stores, drug and grocery stores, and mass-market retailers, and through Natrol.com and other online retailers. Natrol distributes products nationally through more than 54,000 retailers as well as internationally in over 40 other countries through distribution partners. Natrol, Inc., and its six affiliates sought bankruptcy protection on June 11, 2014 (Case No. 14-11446, Bankr. D. Del.). The case is assigned to Judge Brendan Linehan Shannon. The Debtors are represented by Robert A. Klyman, Esq., and Samuel A. Newman, Esq., at GIBSON, DUNN & CRUTCHER LLP, in Los Angeles, California; and Michael R. Nestor, Esq., Maris J. Kandestin, Esq., and Ian J. Bambrick, Esq., at YOUNG CONAWAY STARGATT & TAYLOR, LLP, in Wilmington, Delaware. The Debtors' Claims and Noticing Agent is EPIQ SYSTEMS INC. The Debtors requested that the Court approve the employment of (i) Jeffrey C. Perea of the firm Conway MacKenzie Management Services, LLC as chief financial officer and for CMS to provide temporary employees to assist Mr. Perea in carrying out his duties; (ii) Stephen P. Milner of the firm Squar, Milner, Peterson, Miranda & Williamson LLP as chief restructuring officer and for CMS to provide temporary employees to assist Mr. Milner in carrying out his duties; (iv) BDO USA, LLP as auditor; (v) TaxGroup Partners as tax services provider. The U.S. Trustee for Region 3 on June 19 appointed five creditors of Natrol, Inc. to serve on the official committee of unsecured creditors. The Committee tapped to retain Otterbourg P.C. as lead counsel; (ii) Pepper Hamilton LLP as Delaware counsel; and (iii) CMAG as financial advisors. NEONODE INC: Incurs $3.9 Million Net Loss in Second Quarter ----------------------------------------------------------- Neonode Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.87 million on $865,000 of net revenues for the three months ended June 30, 2014, as compared with a net loss of $3.12 million on $1.08 million of net revenues for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss of $7.88 million on $1.87 million of net revenues as compared with a net loss of $6.69 million on $1.63 million of net revenues for the same period during the prior year. As of June 30, 2014, the Company had $14.98 million in total assets, $5.74 million in total liabilities and $9.23 million in total stockholders' equity. "The ramp of our printer business is progressing and related revenues should continue to ramp as new printers incorporating our technology keep getting introduced. We are engaged with two additional tier one printer OEMs and we believe we will expand our market share of the ~100 million unit printer market," said Neonode CEO Thomas Eriksson. A full-text copy of the Form 10-Q is available for free at: http://is.gd/JQQK7Y CFO to Retire Effective Aug. 15, 2014, David Brunton will retire from his position as Neonode's chief financial officer, vice president, finance, treasurer and secretary in accordance with a Separation Agreement dated Aug. 5, 2014. Neonode previously disclosed in a Current Report on Form 8-K filed May 9, 2014, that Mr. Brunton intended to retire within 12 months. Mr. Brunton will continue to act as a consultant to Neonode in accordance with a Consulting Agreement. On Aug. 5, 2014, Mr. Brunton and Neonode entered into a Separation Agreement in connection with his retirement as Neonode's chief financial officer, vice president, finance, treasurer and secretary effective Aug. 15, 2014. Under the terms of the Separation Agreement, in lieu of any severance amount due to him under his Executive Severance Agreement and any other accrued benefits due to him including under his Employment Agreement, Neonode will pay $180,000 to Mr. Brunton and also will provide Mr. Brunton with health insurance through his 65th birthday in 2015. In addition, pursuant to the Separation Agreement, Neonode agreed to modify Mr. Brunton's outstanding options so that their amended expiration date is July 1, 2015. Also on Aug. 5, 2014, Mr. Brunton and Neonode entered into a Consulting Agreement pursuant to which Mr. Brunton will perform consulting services to Neonode effective Aug. 15, 2014. Under the terms of the Consulting Agreement, Mr. Brunton will work up to 40 hours per month and will receive compensation of $3,333.32 per month. Lars Lindqvist Quits as Director On Aug. 5, 2014, Lars Lindqvist resigned as a member of the Board of Directors of Neonode. On Aug. 5, 2014, the Board of Directors of Neonode appointed Mr. Lindqvist as Neonode's chief financial officer, vice president, finance, treasurer, and secretary effective Aug. 15, 2014. Mr. Lindqvist, age 57, previously served as a director of Neonode Inc. since November 2011. Since January 2013, Mr. Lindqvist has served as a management consultant to LQ Consulting GmbH. Mr. Lindqvist served as interim chief executive officer of 24 Mobile Advertising Solutions AB from June 2012 to December 2012 and as interim chief executive officer of ONE Media Holding AB from April 2011 to May 2012. Mr. Lindqvist served as chief financial officer for Mankato Investments AG Group from June 2005 to March 2011. From August 2002 to May 2005, Mr. Lindqvist served as chief financial officer for Microcell OY, a Finnish ODM of mobile phones, and from May 1995 to July 2002, he served as chief financial officer of Ericsson Mobile Phones. In connection with his appointment as an officer of Neonode, Mr. Lindqvist and Neonode entered into an Employment Agreement. Under his Employment Agreement, Mr. Lindqvist is entitled to receive a monthly salary, payable in Swedish Krona, of 125,000 SEK (approximately US$18,000). In addition, under his Employment Agreement, Mr. Lindqvist will be paid a fee of 250,000 SEK (approximately US$37,000) during the initial 30 days of his transition into the chief financial officer position, and a fee of 200,000 SEK (approximately US$29,000) in connection with his relocation to Stockholm, Sweden. Mr. Lindqvist's Employment Agreement also provides that he is entitled to receive a bonus for 2014 of up to 300,000 SEK (approximately US$43,500) and a bonus in each subsequent year of up to 50% of his total yearly salary. Mr. Lindqvist further is eligible to receive health care, pension, and other employee benefits in accordance with his Employment Agreement. On Aug. 5, 2014, in connection with the appointment of Mr. Lindqvist to the position of chief financial officer effective Aug. 15, 2014, Neonode determined that effective Aug. 15, 2014, the principal executive office of Neonode will be in Stockholm, Sweden, where both the chief executive officer and chief financial officer of Neonode will be based. Specifically, the principal executive office will be at Neonode's previously-disclosed office space located at Storgatan 23C, 114 55 Stockholm, Sweden. Neonode will continue to have its United States headquarters at its existing office in Santa Clara, California. Per Lofgren Appointed as Director On Aug. 5, 2014, Per Lofgren was appointed a member of the Board of Directors of Neonode. Mr. Lofgren will serve as a Class III director to fill the vacancy created by Mr. Lindqvist's resignation. Mr. Lofgren also was appointed as Chairman of the Audit Committee and a member of each of the Compensation Committee and the Nominating and Governance Committee. The Board of Directors of Neonode has determined that Mr. Lofgren is an "independent director" in accordance with the listing rules of the NASDAQ Stock Market, and is eligible to serve on each of the committees to which he has been appointed. In addition, the Board of Directors of Neonode has determined that Mr. Lofgren is an "audit committee financial expert" in accordance with the rules and regulations of the Securitas and Exchange Commission and the listing rules of the NASDAQ Stock Market. Mr. Lofgren, age 50, has been employed for the past 30 years in various management positions for Ericsson, a multinational provider of communications technology and services. Since 2011, he has served as executive vice president and chief financial officer of Ericsson North America. From 2008 until 2011, Mr. Lofgren served as president of Ericsson Sweden AB. Prior to 2008, he served in various Ericsson business units globally as a division chief financial officer, controller, marketing and other management positions. About Neonode Inc. Lafayette, Calif.-based Neonode Inc. (OTC BB: NEON) -- http://www.neonode.com/-- provides optical touch screen solutions for hand-held and small to midsize devices. Neonode reported a net loss of $13.08 million in 2013, a net loss of $9.28 million in 2012 and a net loss of $17.14 million in 2011. NEW WORLD RESOURCES: Sept. 9 Hearing on Chapter 15 Recognition -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York will hold a hearing Sept. 9 at 10 a.m. (NY Time), to consider the petition filed by Boudewijn Wentink -- the foreign representative of New World Resources N.V., the financing vehicle for Dutch company CERCL Mining B.V. -- for recognition as a "foreign main" proceeding under Chapter 15 of the U.S. Bankruptcy Code of New World's voluntary restructuring proceedings pending before the Chancery Division (Companies Court) of the High Court of Justice of England and Wales. At the Recognition Hearing, the U.S. Court may order the scheduling of a case management conference to consider the efficient administration of the case. Responses or objections to the Chapter 15 petition may be submitted by Aug. 29 to: -- Mr. Wentink's U.S. counsel: Richard A. Graham, Esq. Richard S. Kebrdle, Esq. WHITE & CASE LLP 1155 Avenue of the Americas New York, NY 10036-2787 Tel: 212-819-8200 Fax: 212-354-8113 E-mail: rkebrdle@whitecase.com -- U.K. Counsel to the Debtor: Time Lees, Esq. WHITE & CASE LLP 5 Old Broad Street London, ECN2N 1DW United Kingdom Tel: + 44 20 7532 1746 Fax: + 44 20 7532 1001 E-mail: tlees@whitecase.com -- Counsel to the Existing Trustees: Elizabeth McGovern, Esq. REED SMITH LLP Broadgate Tower 20 Primrose Street London, EC2A 2RS United Kingdom Tel: +44 (0)20 3116 3151 Fax: +44 (0)20 3116 3999 E-mail: emcgovern@reedsmith.com -- Counsel to the Security Agent: Yannis Erifillidis, Esq. NORTON ROSE FULBRIGHT LLP 3 More London Riverside London SE1 2AQ United Kingdom Tel: + 44 20 7444 2064 Fax: + 44 20 7283 6500 E-mail: yannis.erifillidis@nortonrosefulbright.com -- Counsel to the Ad Hoc Group: Geoff O'Dea, Esq. Sean Lacey, Esq. FRESHFIELDS BRUCKHAUS DERINGER 65 Fleet Street London EC4Y 1HT United Kingdom Tel: +44 20 7936 4000 Fax: +44 20 7832 7001 E-mail: geoff.odea@freshfields.com sean.lacey@freshfields.com -- Counsel to CERCL: Adam Goldberg, Esq. LATHAM & WATKINS LLP 885 Third Avenue New York, NY 10022-4834 Tel: 212-906-1828 E-mail: adam.goldberg@lw.com -- the Information Agent: Sunjeeve Patel Thomas Choquet LUCID ISSUER SERVICES LIMITED Leroy House 436 Essex Road London N1 3QP United Kingdom Tel: +44 20 7704 0880 E-mail: invitel@lucid-is.com -- Mr. Wentink's U.S. counsel: Richard A. Graham, Esq. WHITE & CASE LLP 1155 Avenue of the Americas New York, NY 10036-2787 Tel: 212-819-8200 Fax: 212-354-8113 -- Office of the U.S. Trustee in New York Details of New World's Chapter 15 filing was reported by the Troubled Company Reporter on Aug. 5, and the case summary was reported by the TCR on July 31. 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. NY SATELLITE INDUSTRIES: 4th Cir. Rejects Owner's Appeal -------------------------------------------------------- The United States Court of Appeals, Fourth Circuit, dismissed the related appeals UNITED STATES OF AMERICA, Plaintiff-Appellee, v. NADER MODANLO, a/k/a Nader Modanlou, a/k/a Nader Modanlu, Defendant-Appellant; and UNITED STATES OF AMERICA, Plaintiff- Appellee, v. NADER MODANLO, a/k/a Nader Modanlou, a/k/a Nader Modanlu, Defendant-Appellant, Nos. 13-4378, 13-4414 (4th Cir.). In the appeal, the Fourth Circuit was required to decide whether a criminal defendant can, by less than extraordinary means, divest the district court of jurisdiction in the middle of his trial and command that the ongoing proceedings be suspended. Twenty days after his trial had begun, before the prosecution had finished presenting its evidence, Nader Modanlo filed a notice of appeal of the court's written order denying his motion to dismiss one of the 11 charges against him as barred by collateral estoppel. Sixteen days later, on the eve of jury deliberations, Modanlo filed a second notice of appeal challenging the court's denial of his motion to sever that same charge from the remainder of the trial. Because neither notice was effective to confer appellate jurisdiction over the merits of the underlying rulings, the Fourth Circuit dismissed them both. According to the Fourth Circuit, Modanlo will have to wait until his final-judgment appeal to press his contentions concerning the district court's collateral estoppel ruling, together with any other issues he may legitimately raise. A copy of the Fourth Circuit's August 7, 2014 decision is available at http://is.gd/tK6Js9from Leagle.com. Modanlo, a naturalized American citizen, was born in Iran and educated in the United States. By its operative Third Superseding Indictment of February 20, 2013, the grand jury in the District of Maryland accused Modanlo of facilitating the 2005 launch and subsequent maintenance of an Iranian communications satellite by a state-owned Russian conglomerate, in violation of the Iran Trade Embargo. According to the Indictment, the Iranians availed themselves of Modanlo's business contacts with the Russians, as a result of which about $10 million in cash made its way in 2002 from Iran to Modanlo's closely held business entity, New York Satellite Industries, LLC. The cash hoard was funneled through Prospect Telecom, a Swiss entity established and funded by the Iranians, with straw ownership. The first ten counts of the eleven-count Indictment charged Modanlo with conspiring to illegally avoid the trade embargo, with three substantive violations thereof, with money laundering in connection with the initial transfer of funds from Prospect Telecom to NYSI, and with five instances of engaging in monetary transactions in excess of $10,000 with criminally derived property. The latter five charges stemmed from retransfers of the laundered funds to numbered accounts at two Russian banks and, on three occasions, to a domestic account in the name of Final Analysis Communications Services ("FACS"), a subsidiary of Final Analysis, Inc. ("FAI"). Modanlo, with Michael Ahan, had formed FAI in Maryland in 1992. In September 2001, FAI's creditors placed it in involuntary Chapter 7 bankruptcy. Ahan later sued Modanlo over the conduct of their joint business affairs and obtained a judgment of $109 million, prompting Modanlo to file for personal Chapter 11 reorganization in July 2005. As is typical in a proceeding under Chapter 11, Modanlo retained possession of the bankruptcy estate and administered it himself. Meanwhile, as part of the Chapter 7 liquidation of FAI, NYSI had purchased the controlling stock in FACS. That stock increased in value after FACS, embroiled in separate litigation in the district court, was the beneficiary of a jury verdict in September 2005 amounting to nearly $160 million. On October 14, 2005, Prospect Telecom brought a replevin action in Maryland against NYSI, seeking possession of the FACS stock. Therein, it was alleged that NYSI was in default of its $10 million "loan," in consideration of which the FACS stock had been pledged as collateral. NYSI chose not to appear to defend the allegations, and Modanlo thereafter signed its stock certificates over to Prospect Telecom. The stock transfer came to light a few weeks later, during a hearing on Ahan's motion in the bankruptcy proceeding to appoint a trustee for the Chapter 11 estate.1 That motion was granted, and, upon appointment, the trustee filed a petition to also place NYSI into Chapter 11 reorganization; the Modanlo and NYSI bankruptcies were subsequently consolidated and jointly administered. As it turned out, the verdict in favor of FACS provided no boon to either NYSI or Prospect Telecom, as the jury's award was reduced post-trial by the district court and then eliminated entirely on appeal, leaving intact an $8 million judgment against FACS on a pair of counterclaims. After the FACS stock proved to be essentially worthless, Modanlo moved to voluntarily dismiss the joint proceedings. The bankruptcy court granted the motion over the objections of the Chapter 11 trustee and the United States Trustee, both of whom complained that Modanlo's tactics had complicated the search for assets and otherwise hindered the efficient administration of the reorganization process. Modanlo testified several times in connection with the bankruptcy proceedings. On certain of those occasions, Modanlo insisted that he had negotiated an arms-length loan agreement with Prospect Telecom and denied intimate knowledge of that company's formation or operations, denied any awareness of the identity or nationality of its beneficial owners, and denied that he had received the $10 million in payment for his services. Modanlo's denials under oath served as the basis of Count Eleven of the Indictment, which charged him with obstructing, influencing, or impeding the bankruptcies. Lawyers at Gibson, Dunn & Crutcher LLP represent Modanlo. Nader Modanlo sought Chapter 11 protection from his creditors (Bankr. D. Md. Case No. 05-26549) prior to BAPCAP's enactment on Oct. 15, 2005. New York Satellite Industries LLC sought Chapter 11 protection from its creditors (Bankr. Case No. 06-10158) after BAPCPA's enactment. After a chapter 11 trustee was appointed in both cases, Mr. Modanlo moved to dismiss both cases. Judge Nancy Alquist has removed the Chapter 11 Trustee but has declined to dismiss the cases. The Debtors are represented by Christopher B. Mead, Esq., at London & Mead in Washington, D.C., and Richard Marc Goldberg, Esq., in Baltimore, Md. ONE2ONE COMMUNICATIONS: Quad/Graphics Can't File Avoidance Suits ---------------------------------------------------------------- Bankruptcy Judge Novalyn L. Winfield denied the request of Quad/Graphics, Inc. (i) to obtain derivative standing in the Chapter 11 case of One2One Communications, LLC, to pursue avoidance actions and (ii) to extend the time periods under Bankruptcy Code Sections 108(a) and 546(a) for filing avoidance actions. One2One and certain officers and employees of the Reorganized Debtor, including Bruce Heverly, Joanne Heverly, Amy Heverly- DeSanto, Travis Howe, Frank DeCicco, Tom Mason and certain other employees and officers, object to Quad's motion . One2One's Chapter 11 bankruptcy was precipitated by the Debtor's litigation with Quad, which culminated in a judgment in favor of Quad in the amount of $9,359,630. This judgment was the largest claim against the Debtor when it filed for Chapter 11 relief. Early in the case, the United States Trustee appointed Quad, Ricoh Production Print Solutions, LLC and Enterprise Group as members of the Official Unsecured Creditors' Committee. The Creditors' Committee retained counsel and a financial consultant and fully participated in the case, including negotiations with the Debtor on the terms of a plan of reorganization. Those negotiations led to a First Amended Plan of Reorganization, which was supported by the Creditors'Committee, but not by Quad. Quad objected to the First Amended Plan on several grounds, and, after hearing extensive testimony, the court denied confirmation of the Debtor's First Amended Plan on December 6, 2012, primarily on the ground that the Debtor did not demonstrate that it met the "new value" exception. Ultimately, the Debtor obtained an investor, Bela Szigethy, who formed One2One Holdings, LLC to acquire 100% of the ownership interest in the Debtor in exchange for an investment of $200,000. Under the Plan Support Agreement between the Debtor and One2One Holdings, LLC the Debtor's existing management was continued in place. Mr. Szigethy's investment and the Plan Support Agreement eventually resulted in a Fourth Amended Plan that was submitted to creditors. Notably, in the Fourth Amended Disclosure Statement sent to creditors, the Debtor explicitly disclosed that "No claims shall be pursued against any principal, director, officer, shareholder or employee of the Debtor. This determination was made by the Debtor and Creditors' Committee based upon the value of the claims, the cost to pursue the claims, the likelihood of success in pursuing the claim, and the ability to collect if the claim was pursued." After the court approved the Debtor's Fourth Amended Disclosure Statement and the Debtor submitted the Fourth Amended Plan to its creditors for voting, impaired classes One through Five voted to accept the Fourth Amended Plan. Only Quad, separately classified in classes Six and Seven, rejected the Plan. Consistent with its rejection of the Debtor's plan, Quad also raised the decision by the Debtor and the Creditor's Committee to not pursue avoidance actions as a basis for objection to confirmation. The hearing to confirm the Debtor's Fourth Amended Plan required five days of testimony. As part of the February 2013 confirmation hearings, the court considered the testimony presented by the financial advisors for the Debtor and Quad regarding potential avoidance action recoveries. On this specific issue, the court determined that Quad's expert overestimated the amount that could be realized from avoidance actions and underestimated the costs to effect such recoveries. Additionally, the court reviewed the testimony given by the financial advisor to the Creditors' Committee at the prior confirmation hearing and found that the decision by the Creditors' Committee to not pursue avoidance actions was an appropriate exercise of business judgment. This exercise of business judgement by the Creditors' Committee and its counsel also is evidenced by counsel's email response to Quad's offer to purchase the avoidance action for $5,000. The Committee said it does not "necessarily agree to anyone else's valuation of alleged chapter 5 claims." The court issued its order confirming the Debtor's Fourth Amended Plan on March 25, 2013. Quad did not request that the Bankruptcy Court grant it derivative standing to pursue avoidance actions until July 10, 2014 -- which is the last day on which an avoidance action could be instituted under Bankruptcy Code Sec. 546(a), absent an extension of time granted by the court. According to the Bankruptcy Court, Quad's motion does not provide much in the way of factual support for the derivative standing it seeks to prosecute avoidance actions. It simply recites the history of its efforts opposing the Debtor's plan, including its opposition to the release of actions against insiders and other third parties. A copy of the Court's August 7, 2014 Opinion is available at http://is.gd/qYEQqsfrom Leagle.com. Counsel to Quad/Graphics, Inc.: Courtney A. Schael, Esq. Ashford - Schael, LLC 1371 Morris Avenue Union, NJ 07083 Tel: 908-232-5566 Fax: 908-728-3113 E-mail: cschael@AshfordNJLaw.com Counsel to One2One Holdings, LLC are: Michael D. Sirota, Esq. David M. Bass, Esq. Nicholas B. Vislocky, Esq. COLE, SCHOTZ, MEISEL, FORMAN & LEONARD, PA Court Plaza North 25 Main Street Hackensack, NJ 07601 Tel: 201-489-3000 Fax: 201-489-1536 E-mail: dbass@coleschotz.com nvislocky@coleschotz.com Counsel to the Employees and Officers of One2One Communications, LLC is: Mitchell Malzberg, Esq. LAW OFFICE OF MITCHELL MALZBERG, ESQ. 29 Race Street Frenchtown, NJ 08825 Tel: (908) 996-3716 Fax: (908) 996-7743 E-mail: mmalzberg@mmpclawfirm.com One2One Communications, LLC, filed a Chapter 11 petition (Bankr. D.N.J. Case No. 12-27311) on July 10, 2012. The Debtor tapped Richard D. Trenk, Esq., at Trenk, Dipasquale, Della Fera & Sodono, P.C., as counsel. The Debtor disclosed $354,088 in assets and $13,687,311 in liabilities. OVERSEAS SHIPHOLDING: Net Loss Widens to $204,111,000 in Q2 ----------------------------------------------------------- Overseas Shipholding Group, Inc., which exited Chapter 11 protection last week, has delivered to the Securities and Exchange Commission its Form 10-Q report for the quarterly period ended June 30, 2014. In the financial report, filed Aug. 4, OSG posted shipping revenues of $241,777,000 for the three months ended June 30, 2014, slightly up from the $228,114,000 for the same period in 2013. Shipping revenues for the six months ended June 30, 2014, were $534,223,000, also up from $475,552,000 from the same period in 2013. OSG, however, posted wider net loss of $204,111,000 for the three months ended June 30, 2014, from $24,147,000 from the same period in 2013. Net loss was $193,694,000 for the six months ended June 30, 2014, from $191,909,000 during the same period in 2013. OSG said total assets were $3,655,434,000 at June 30, 2014, against total liabilities of $3,911,285,000. A copy of the Form 10-Q report is available at http://is.gd/1N2DAe OSG notified the U.S. Bankruptcy Court for the District of Delaware that on Aug. 5, 2014, each of the conditions precedent to the effectiveness of the First Amended Joint Plan of Reorganization occurred or was waived in accordance with the provisions of the Plan. Accordingly, the Plan became effective and was substantially consummated on Aug. 5. The Debtors will make initial distributions to holders of allowed claims and allowed equity interests on or before Aug. 19. About Overseas Shipholding Overseas Shipholding Group, Inc. (OTC: OSGIQ), headquartered in New York, is one of the largest publicly traded tanker companies in the world, engaged primarily in the ocean transportation of crude oil and petroleum products. OSG owns or operates 111 vessels that transport oil and petroleum products throughout the world. Overseas Shipholding Group and 180 affiliates filed voluntary Chapter 11 petitions (Bankr. D. Del. Lead Case No. 12-20000) on Nov. 14, 2012, disclosing $4.15 billion in assets and $2.67 billion in liabilities. Greylock Partners LLC Chief Executive John Ray serves as chief reorganization officer. James L. Bromley, Esq., and Luke A. Barefoot, Esq., at Cleary Gottlieb Steen & Hamilton LLP serve as OSG's Chapter 11 counsel. Derek C. Abbott, Esq., Daniel B. Butz, Esq., and William M. Alleman, Jr., at Morris, Nichols, Arsht & Tunnell LLP, serve as local counsel. Chilmark Partners LLC serves as financial adviser. Kurtzman Carson Consultants LLC is the claims and notice agent. The Export-Import Bank of China, owed $312 million used for the construction of five tankers, is represented by Louis R. Strubeck, Jr., Esq., and Kristian W. Gluck, Esq., at Fulbright & Jaworski LLP in Dallas; David L. Barrack, Esq., and Beret Flom, Esq., at Fulbright & Jaworski in New York; and John Knight, Esq., and Christopher Samis, Esq., at Richards Layton & Finger PA. Chilmark Partners, LLC serves as financial and restructuring advisor. Akin Gump Strauss Hauer & Feld LLP, and Pepper Hamilton LLP, serve as co-counsel to the official committee of unsecured creditors. FTI Consulting, Inc., is the financial advisor and Houlihan Lokey Capital, Inc., is the investment banker. U.S. Bank National Association is the successor administrative agent under the $1.5 billion credit agreement, dated as of February 9, 2006 by and among (a) OSG, OSG Bulk Ships, Inc., and OSG International, Inc., as joint and several borrowers, (b) the Administrative Agent and (c) various lenders party thereto. Counsel to the Administrative Agent are Milbank, Tweed, Hadley & McCloy LLP; Holland & Knight LLP; and Drinker Biddle & Reath LLP. Lazard Freres & Co. LLC serves as advisor to the Administrative Agent. An official committee of Equity Security Holders has been appointed in the case. It is represented by Brown Rudnick LLP's Steven D. Pohl, Esq., James W. Stoll, Esq. and Jesse N. Garfinkle, Esq.; Fox Rothschild LLP's Jeffrey M. Schlerf, Esq., John H. Strock, Esq. and L. John Bird, Esq. Judge Walsh signed on July 18, 2014, a findings of fact, conclusions of law, and order confirming the First Amended Joint Plan of Reorganization of OSG and its debtor-affiliates. A blacklined version of the Plan dated July 17, 2014, is available at http://bankrupt.com/misc/OSGplan0716.pdf A full-text copy of Judge Walsh's Confirmation Order is available at http://bankrupt.com/misc/OSGplanord0718.pdf OVERSEAS SHIPHOLDING: Caxton Int'l Acquires 12.61% Equity Stake --------------------------------------------------------------- Scott B. Bernstein, Caxton Associates LP and their affiliated entities filed with the U.S. Securities and Exchange Commission Amendment No. 1 to Schedule 13D, disclosing their ownership of 12.61% of Class A Common Stock, par value $.01 per share, of Overseas Shipholding Group, Inc. According to the SEC filings, Caxton International Limited, a corporation organized under the laws of the British Virgin Islands, is the record and/or beneficial owner of 10,885,235 shares of Class A Common Stock and 32,601,606 Warrants, which were purchased from OSG in accordance with the terms of the Equity Commitment Agreement entered into with OSG during the bankruptcy proceedings. The aggregate purchase price for such acquired Class A Common Stock and Warrants was $128,706,437, and was paid out of Caxton International's working capital. OSG exited Chapter 11 protection last week. OSG entered into the ECA, dated as of May 2, 2014, as amended, with Caxton International and each of the other so-called Commitment Parties. The ECA was terminated on August 5, 2014 in connection with the consummation of OSG's Chapter 11 Plan. Pursuant to the ECA, OSG agreed, in connection with the consummation of the chapter 11 plan, to issue and distribute its common stock and/or warrants to any person who held shares of OSG's common stock as of a certain date and who elected to exercise subscription rights in accordance with procedures approved by the Bankruptcy Court. Pursuant to the ECA, each Commitment Party, severally and not jointly, agreed with OSG to back-stop, or cause its designees to back-stop, certain securities underlying the subscription rights that were not exercised in accordance with the Rights Offering Procedures. In addition, each Commitment Party agreed to purchase certain additional securities offered by the Issuer to such Commitment Party. As consideration for the foregoing back-stop commitment, OSG paid a certain premium in the form of securities to each Commitment Party. Whether issued upon the valid exercise of the subscription rights or otherwise in accordance with the ECA, the securities were offered, sold, issued and distributed without registration under the Securities Act of 1933, on August 5, 2014. Pursuant to the ECA, on August 5, 2014, Caxton International purchased and received an aggregate amount of 10,885,235 shares of Class A Common Stock and 32,601,606 Warrants for an aggregate purchase price of $128,706,437. Copies of Caxton's 13D filings are available at: http://is.gd/DYY5X6 http://is.gd/V6Jpkb About Overseas Shipholding Overseas Shipholding Group, Inc. (OTC: OSGIQ), headquartered in New York, is one of the largest publicly traded tanker companies in the world, engaged primarily in the ocean transportation of crude oil and petroleum products. OSG owns or operates 111 vessels that transport oil and petroleum products throughout the world. Overseas Shipholding Group and 180 affiliates filed voluntary Chapter 11 petitions (Bankr. D. Del. Lead Case No. 12-20000) on Nov. 14, 2012, disclosing $4.15 billion in assets and $2.67 billion in liabilities. Greylock Partners LLC Chief Executive John Ray serves as chief reorganization officer. James L. Bromley, Esq., and Luke A. Barefoot, Esq., at Cleary Gottlieb Steen & Hamilton LLP serve as OSG's Chapter 11 counsel. Derek C. Abbott, Esq., Daniel B. Butz, Esq., and William M. Alleman, Jr., at Morris, Nichols, Arsht & Tunnell LLP, serve as local counsel. Chilmark Partners LLC serves as financial adviser. Kurtzman Carson Consultants LLC is the claims and notice agent. The Export-Import Bank of China, owed $312 million used for the construction of five tankers, is represented by Louis R. Strubeck, Jr., Esq., and Kristian W. Gluck, Esq., at Fulbright & Jaworski LLP in Dallas; David L. Barrack, Esq., and Beret Flom, Esq., at Fulbright & Jaworski in New York; and John Knight, Esq., and Christopher Samis, Esq., at Richards Layton & Finger PA. Chilmark Partners, LLC serves as financial and restructuring advisor. Akin Gump Strauss Hauer & Feld LLP, and Pepper Hamilton LLP, serve as co-counsel to the official committee of unsecured creditors. FTI Consulting, Inc., is the financial advisor and Houlihan Lokey Capital, Inc., is the investment banker. U.S. Bank National Association is the successor administrative agent under the $1.5 billion credit agreement, dated as of February 9, 2006 by and among (a) OSG, OSG Bulk Ships, Inc., and OSG International, Inc., as joint and several borrowers, (b) the Administrative Agent and (c) various lenders party thereto. Counsel to the Administrative Agent are Milbank, Tweed, Hadley & McCloy LLP; Holland & Knight LLP; and Drinker Biddle & Reath LLP. Lazard Freres & Co. LLC serves as advisor to the Administrative Agent. An official committee of Equity Security Holders has been appointed in the case. It is represented by Brown Rudnick LLP's Steven D. Pohl, Esq., James W. Stoll, Esq. and Jesse N. Garfinkle, Esq.; Fox Rothschild LLP's Jeffrey M. Schlerf, Esq., John H. Strock, Esq. and L. John Bird, Esq. Judge Walsh signed on July 18, 2014, a findings of fact, conclusions of law, and order confirming the First Amended Joint Plan of Reorganization of OSG and its debtor-affiliates. A blacklined version of the Plan dated July 17, 2014, is available at http://bankrupt.com/misc/OSGplan0716.pdf A full-text copy of Judge Walsh's Confirmation Order is available at http://bankrupt.com/misc/OSGplanord0718.pdf OSG notified the Delaware Bankruptcy Court that on Aug. 5, 2014, each of the conditions precedent to the effectiveness of the First Amended Joint Plan of Reorganization occurred or was waived in accordance with the provisions of the Plan. Accordingly, the Plan became effective and was substantially consummated on Aug. 5. The Debtors will make initial distributions to holders of allowed claims and allowed equity interests on or before Aug. 19. PANAMA CITY: Goes After Attys for Bungled Foreclosure Defense ------------------------------------------------------------- Law360 reported that a Florida property management company sued its former counsel claiming the firm botched a foreclosure proceeding that ended in a $5.8 million judgment and drove the company into Chapter 11 protection. According to the report, Panama City Properties LLC sued Archer Bay PA and BKN Murray LLP, claiming the firms failed to file affidavits regarding an earlier settlement to combat a summary judgment motion in a suit to foreclose on its properties in the Island Reserve Condominium Complex in Panama City, Fla. The case is Panama City Properties LLC v. Archer Bay PA et al., case number 9:14-cv-80984, in the U.S. District Court for the Southern District of Florida. PARK INSURANCE: A.M. Best Withdraws 'ccc' Issuer Credit Rating -------------------------------------------------------------- A.M. Best Co. affirmed the financial strength rating of C(Weak) and the issuer credit rating of "ccc" of Park Insurance Company (New York, NY). The outlook for both ratings is negative. Concurrently, A.M. Best has withdrawn the ratings due to management's request to no longer participate in A.M. Best's interactive rating process. PLATFORM SPECIALTY: Agriphar Deal No Impact on Moody's B1 Rating ---------------------------------------------------------------- Moody's said Platform Specialty Products Corporation's (Platform, B1, stable) announced agreement to acquire Belgium-based Agriphar agrochemical business for EUR300 million (approximately US$405 million) in cash, debt, and stock will not negatively impact the rating. Headquartered in Miami, Florida, Platform Specialty Products Corp (Platform) is a publicly-traded company founded by investors Martin Franklin and Nicolas Berggruen in 2013. Platform's first acquisition in 2013 was MacDermid Holdings, LLC, a global manufacturer of variety of chemicals and technical services for a range of applications and markets including; metal and plastic finishing, electronics, graphic arts, and offshore drilling. Platform is in the process of acquiring Chemtura Corporation's AgroSolutions business in a levered transaction valued at roughly $1 billion. The AgroSolutions business is a provider of agrochemical and seed treatment products for a variety of crop applications, and will add a new business vertical to Platform's existing business. Pro forma for the acquisitions, Platform's sales are roughly $1.4 billion for the twelve months ended March 31, 2014 (LTM revenues of $748 million from Platform's existing business and $462 million from AgroSolutions as of March 31, 2014 as well as $171 million YE 2013 revenues from Agriphar). Agriphar is a European crop protection group with leading product development, registration and distribution capabilities. The group provides a wide range of herbicides, fungicides and insecticides across Europe supported by a team of researchers and regulatory experts. Agriphar also has an in-house formulation and packaging capabilities through its facility in Ougree, Belgium. With its owned-distribution subsidiaries, Agriphar has an established presence in Western Europe and has developed a footprint in Central and Latin America. Agriphar generated approximately EUR127 million (US$171 million) in revenue in 2013. PLANT INSULATION: Reorg Plan Flouts 9th Circ., Insurers Say ----------------------------------------------------------- Law360 reported that insurer creditors for Plant Insulation Co. urged a California federal judge to reverse a bankruptcy court's approval of Plant's latest reorganization plan, arguing that the plan flouts a Ninth Circuit order by forcing Plant's trust to purchase a majority of Plant's shares at four times their value. According to the report, attorneys for OneBeacon Insurance Co., one of a group of Plant Insulation's insurers that haven't settled with the bankrupt insulation company, argued that a proposed aspect of the reorganization plan -- in which the bankruptcy trust could purchase a 40 percent stake for $2 million, and another 11 percent for $1 -- doesn't comply with federal bankruptcy law. The case is OneBeacon Insurance Company v. Plant Insulation Company, Case No. 3:14-cv-01200 (N.D.Calif.). San Francisco, California-based Plant Insulation Company manufactured insulation products and services. The Company filed for Chapter 11 protection (Bankr. N.D. Calif. Case No. 09-31347) on May 20, 2009. Michaeline H. Correa, Esq., Peter J. Benvenutti, Esq., and Tobias S. Keller, Esq., at Jones Day, represent the Debtor in its restructuring effort. The Debtor estimated assets and debts ranging from $500 million to $1 billion. PLY GEM: Posts $11.4 Million Net Income in Second Quarter --------------------------------------------------------- Ply Gem Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $11.38 million on $409.21 million of net sales for the three months ended June 28, 2014, as compared with a net loss of $50.87 million on $368.14 million of net sales for the three months ended June 29, 2013. For the six months ended June 28, 2014, Ply Gem reported a net loss of $40.19 million on $678.67 million of net sales as compared with a net loss of $78.98 million on $625.23 million of net sales for the six months ended June 29, 2013. The Company's balance sheet at June 28, 2014, showed $1.09 billion in total assets, $1.18 billion in total liabilities and a $91.43 million total stockholders' deficit. Commenting on the Company's results, Gary E. Robinette, Ply Gem's president and CEO stated, "During the second quarter, we were able to recover from the unusually severe winter weather conditions during the first quarter and experienced net sales growth of 11% and a gross profit increase of 18% from the prior year. This operating performance improvement was primarily attributed to our US Windows businesses partially offset by near-term integration and restructuring costs associated with combining our Western Canadian businesses. Despite the choppiness in U.S. single-family housing starts, we continue to demonstrate improvement in our operating performance and remain focused on our strategic priorities to drive further gross profit improvements and increases in adjusted EBITDA. We continue to remain positive about the long-term recovery for the housing industry and our ability to take advantage of the market as it improves." "As demonstrated in the second quarter, as our volumes increase during the recovery, we expect to generate meaningful operating leverage within all of our businesses. Despite the pace of recovery in the U.S. single-family housing starts being much slower than prior market forecasts, we continue to believe the long-term outlook for the U.S. housing market is positive. I continue to be pleased with the improvement that we are seeing in the operating performance of our U.S. window and door business. Although we have experienced some near-term challenges with integration and restructuring costs associated with the consolidation of our Western Canadian operations into a single manufacturing site, I remain confident in our ability to achieve the cost savings and synergies from our 2013 Canadian acquisitions," stated Mr. Robinette. "Ply Gem has an attractive position in the market place and we will continue to strengthen our position as underlying macro trends improve." A full-text copy of the Form 10-Q is available for free at: http://is.gd/J0xOXH About Ply Gem Based in Cary, North Carolina, Ply Gem Holdings Inc. is a diversified manufacturer of residential and commercial building products, which are sold primarily in the United States and Canada, and include a wide variety of products for the residential and commercial construction, the do-it-yourself and the professional remodeling and renovation markets. Ply Gem Holdings reported a net loss of $79.52 million in 2013, a net loss of $39.05 million in 2012 and a net loss of $84.50 million in 2011. * * * In May 2010, Standard & Poor's Ratings Services raised its (unsolicited) corporate credit rating on Ply Gem to 'B-' from 'CCC+'. "The ratings upgrade reflects our expectation that the company's credit measures are likely to improve modestly over the next several quarters to levels that we would consider more in line with the 'B-' corporate credit rating," said Standard & Poor's credit analyst Tobias Crabtree. PORTER BANCORP: Incurs $672,000 Net Loss in Second Quarter ---------------------------------------------------------- Porter Bancorp, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common shareholders of $672,000 on $10.16 million of interest income for the three months ended June 30, 2014, as compared with a net loss attributable to common shareholders of $1.68 million on $11.16 million of interest income for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss attributable to common shareholders of $1.64 million on $20.06 million of interest income as compared with a net loss attributable to common shareholders of $2.21 million on $22.42 million of interest income for the six months ended June 30, 2013. As of June 30, 2014, the Company had $1.05 billion in total assets, $1.01 billion in total liabilities and $37.77 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/i1MaV3 About Porter Bancorp Porter Bancorp, Inc., is a bank holding company headquartered in Louisville, Kentucky. Through its wholly-owned subsidiary PBI Bank, the Company operates 18 full-service banking offices in 12 counties in Kentucky. Porter Bancorp incurred a net loss attributable to common shareholders of $3.39 million in 2013, a net loss attributable to common shareholders of $33.43 million in 2012 and a net loss attributable to common shareholders of $105.15 million in 2011. Crowe Horwath, LLP, in Louisville, Kentucky, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred substantial losses in 2013, 2012 and 2011, largely as a result of asset impairments. In addition, the Company's bank subsidiary is not in compliance with a regulatory enforcement order issued by its primary federal regulator requiring, among other things, increased minimum regulatory capital ratios. Additional losses or the continued inability to comply with the regulatory enforcement order may result in additional adverse regulatory action. These events raise substantial doubt about the Company's ability to continue as a going concern. PRESTIGE BRANDS: Moody's Lowers Corporate Family Rating to 'B2' --------------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating ("CFR") of Prestige Brands, Inc. to B2 from B1. Accordingly, its Probability of Default Rating was downgraded to B2-PD, the senior secured debt rating to B1 from Ba2 and senior unsecured debt rating to Caa1 from B2. This concludes the review for downgrade initiated on April 28, 2014 following the company's announced $750 million debt-funded acquisition of Insight Pharmaceuticals, LLC ("Insight"). Moody's also assigned a B1 rating to Prestige Brands' proposed $720 million add-on senior secured term loan. The rating outlook is stable. The rating downgrade reflects substantially increased leverage (6.5 times resulting from the Insight acquisition), as well as the challenges Prestige will face in reversing declining sales among the brands it is acquiring. Debt-to-EBITDA will increase from 4.6 times to 6.5 times on a pro forma basis for the 12 month period ending March 31, 2014. Moody's expects, however, that Prestige's strong free cash flow will support delevering to 5.5 to 6 times by the end of 2015 absent additional acquisitions as the company continues to use its free cash flow to pay down debt. Moody's also affirmed Prestige Brands' SGL-1 speculative-grade liquidity rating. Moody's expects to withdraw ratings on Insight Pharmaceuticals upon closing of the transaction, assuming all of its debt is repaid. Ratings Downgraded: Prestige Brands, Inc.: Corporate Family Rating to B2 from B1; Probability of Default Rating to B2-PD from B1-PD; Senior Secured Bank Credit Facility to B1, (LGD3) from Ba2(LGD2); Senior Unsecured Bonds to Caa1(LGD5) from B2(LGD5); Ratings Assigned: Senior Secured Bank Credit Facility ($720 million add-on), assigned B1(LGD3) Ratings Affirmed: Speculative-grade liquidity rating affirmed at SGL-1 Outlook Actions: Outlook Changed to Stable from Ratings Under Review PRESTIGE BRANDS: S&P Affirms B+ CCR; Removed From Watch Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Prestige Brands Inc. (PBH) and removed the company from CreditWatch with negative implications, where S&P had placed them on April 25, 2014. The outlook is negative. At the same time, S&P affirmed its 'BB' rating on the company's existing senior secured debt. The recovery rating on the senior secured debt is '1', indicating that lenders could expect very high (90% to 100%) recovery in the event of a payment default. In addition, S&P lowered its senior unsecured debt rating to 'B-' from 'B+'. The recovery rating on this debt is '6', indicating that lenders could expect negligible (0% to 10%) recovery in the event of a payment default. S&P estimates that debt pro forma for the transaction will total approximately $1.7 billion. Despite higher debt levels and weaker credit measures, the corporate credit rating affirmation reflects S&P's view that the company will successfully integrate the Insight Pharmaceuticals acquisition and apply free cash flow for debt reduction to improve its credit protection measures over the next two to three years. This includes S&P's forecast for leverage to decline to the mid-5x area by the end of fiscal 2015 (ending March 31) from just above 6x pro forma at the close of the transaction. S&P could still lower the rating if the integration does not proceed as planned or if credit measures do not strengthen over the next year, which could occur if sales are weaker than expected despite increased brand spending, which S&P believes could result in reduced cash flow generation and leverage remaining around 6.0x. S&P considers PBH's financial policy to be aggressive based on its active acquisition-based growth strategy and on its use of debt as its primary source to fund such transactions. S&P's current rating incorporates the expectation that acquisition activity will be limited until credit measures strengthen. Over time, S&P still expects the company to remain opportunistic with regards to acquisitions, but that it will hold off on additional acquisitions until it reduces leverage to the mid-4.0x area. PRINCE PREFERRED HOTELS: 3rd Amended Plan Confirmed --------------------------------------------------- Bankruptcy Judge Stephen V. Callaway confirmed the Third Amended Plan of Reorganization of Prince Preferred Hotels Shreveport 2, LLC. The original Plan documents were filed June 19. A first revision was filed July 16. The second and third revisions were filed Aug. 5 and 6, respectively. The Court approved the explanatory disclosure statement July 16. A hearing to confirm the Plan was held Aug. 6. The Plan satisfies the requirements for confirmation set forth in Bankruptcy Code Section 1129, Judge Callaway said in his Aug. 6 FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER UNDER 11 U.S.C. Sec. 1129 CONFIRMING DEBTOR'S THIRD AMENDED PLAN OF REORGANIZATION, available at http://is.gd/ovfVlUfrom Leagle.com. Counsel for the Debtor are: Rakhee V. Patel, Esq. Frances A. Smith, Esq. Christina W. Stephenson, Esq. SHACKELFORD, MELTON & MCKINLEY, LLP Dallas, TX E-mail: rpatel@shacklaw.net fsmith@shacklaw.net cstephenson@shacklaw.net - and - Robert W. Raley & Associates, Robert W. Raley, Esq. 290 Benton Road Spur Bossier City, LA E-mail: rraley52@bellsouth.net Prince Preferred Hotels Shreveport 2 LLC, based in Shreveport, Louisiana, filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case No. 13-36337) on December 4, 2013, in Dallas. Judge Barbara J. Houser was first assigned to the case. In its petiton, the Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Sunil A. Tolani, managing member. PROXYMED INC: Suit Alleging Shareholder Caused Bankruptcy Is Cut ---------------------------------------------------------------- Law360 reported that a Delaware federal judge tossed one claim and left the other two intact in a suit alleging that the actions of private equity firm General Atlantic LLC and its managing director led to the bankruptcy of ProxyMed Inc., which provided information technology services to doctors, pharmacies and labs. According to the report, NHB Assignments LLC, acting as the liquidating trustee on behalf of bankrupt ProxyMed, had alleged that General Atlantic and one of its managing directors, Braden Kelly, each breached their fiduciary duties to ProxyMed and that General Atlantic aided and abetted Kelly's fiduciary duty breach. According to the lawsuit, their actions resulted in ProxyMed losing $100 million of "enterprise value," which ultimately led to the bankruptcy. The case is NHB Assignments LLC v. General Atlantic LLC, et al., Case No. 1:12-cv-01020 (D.Del.). Headquartered in Norcross, Georgia, ProxyMed Inc. f/k/a MedUnite, Inc. -- http://www.medavanthealth.com-- facilitates the exchange of medical claim and clinical information. On Sept. 17, 2008, the company filed Articles of Amendment to its Articles of Incorporation to change its name from ProxyMed, Inc. to PM Liquidating Corp. The company and two of its affiliates filed for Chapter 11 protection on July 23, 2008 (Bankr. D. Del. Lead Case No.08- 11551). Kara Hammond Coyle, Esq., and Michael R. Nestor, Esq., at Young Conaway Stargatt & Taylor, L.L.P., represent the Debtors in their restructuring efforts. The Debtors indicated $40,655,000 in total consolidated assets and $47,640,000 in total consolidated debts as of December 31, 2007. In its petition, ProxyMed Transaction Services, Inc. indicated $10,000,0000 in estimated assets and $10,000,000 in estimated debts. At Aug. 31, 2008, the company reported total assets of $13,500,145, total liabilities of $28,014,859, and stockholders' deficit of $14,514,714. PUERTO RICO: Municipal Bankruptcy Proposed in U.S. House Bill ------------------------------------------------------------- William Selway and Derek Wallbank, writing for Bloomberg News, reported that Puerto Rico's government-owned corporations could file for bankruptcy protection under a bill proposed in the U.S. House of Representatives by the delegate from the Caribbean territory, which is struggling to pay $73 billion in debt. According to the report, Pedro Pierluisi, a Democrat who can propose legislation but can't vote on it, has introduced the measure that would let agencies restructure debt in court. The bill would "enable the Puerto Rico government to authorize its government-owned corporations to utilize the tried-and-true Chapter 9 procedure if it becomes necessary, under the expert supervision of an impartial federal bankruptcy judge," Bloomberg said, citing Pierluisi as saying in a statement. QUALITY DISTRIBUTION: Swings to $11.4 Million Net Income in Q2 -------------------------------------------------------------- Quality Distribution, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $11.36 million on $255.59 million of total operating revenues for the three months ended June 30, 2014, as compared with a net loss of $31.14 million on $239.29 million of total operating revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income of $14.44 million on $490.08 million of total operating revenues as compared with a net loss of $22 million on $468.71 million of total operating revenues for the same period last year. As of June 30, 2014, the Company had $445.64 million in total assets, $481.19 million in total liabilities and a $35.55 million total shareholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/6HECkZ About Quality Distribution Quality Distribution, LLC, and its parent holding company, Quality Distribution, Inc., are headquartered in Tampa, Florida. The company is a transporter of bulk liquid and dry bulk chemicals. The company's 2010 revenues are approximately $686 million. Apollo Management, L.P., owns roughly 30 percent of the common stock of Quality Distribution, Inc. Quality Distribution reported a net loss of $42.03 million on $929.81 million of total operating revenues for the year ended Dec. 31, 2013, as compared with net income of $50.07 million on $842.11 million of total operating revenues in 2012. Bankruptcy Warning The Company had consolidated indebtedness and capital lease obligations, including current maturities, of $383.3 million as of Dec. 31, 2013. The Company must make regular payments under the ABL Facility, including the $17.5 million senior secured term loan facility that was fully funded on July 15, 2013, and the Company's capital leases and semi-annual interest payments under its 2018 Notes. "The ABL Facility matures August 2016. Obligations under the Term Loan mature on June 14, 2016 or the earlier date on which the ABL Facility terminates. The maturity date of the ABL Facility, including the Term Loan, may be accelerated if we default on our obligations. If the maturity of the ABL Facility and/or such other debt is accelerated, we may not have sufficient cash on hand to repay the ABL Facility and/or such other debt or be able to refinance the ABL Facility and/or such other debt on acceptable terms, or at all. The failure to repay or refinance the ABL Facility and/or such other debt at maturity would have a material adverse effect on our business and financial condition, would cause substantial liquidity problems and may result in the bankruptcy of us and/or our subsidiaries. Any actual or potential bankruptcy or liquidity crisis may materially harm our relationships with our customers, suppliers and independent affiliates," the Company said in the Annual Report for the year ended Dec. 31, 2013. * * * As reported in the TCR on June 28, 2013, Moody's Investors Service upgraded Quality Distribution, LLC's Corporate Family Rating to B2 from B3 and Probability of Default Rating to B2-PD from B3-PD. The upgrade of Quality's CFR to B2 was largely driven by the expectation that credit metrics will improve over the next twelve to eighteen months, through a combination of EBITDA growth and debt paydowns, to levels consistent with the B2 rating level. The company is in the process of integrating the bolt-on acquisitions made in its Energy Logistics business sector since 2011. QUANTUM CORP: Swings to $4.3 Million Net Loss in June 30 Quarter ---------------------------------------------------------------- Quantum Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $4.32 million on $128.12 million of total revenue for the three months ended June 30, 2014, as compared with net income of $3.28 million on $147.84 million of total revenue for the same period in 2013. As of June 30, 2014, the Company had $351.21 million in total assets, $439.81 million in total liabilities and a $88.59 million total stockholders' deficit. Cash and cash equivalents at June 30, 2014, was $104.4 million. "We continue to focus on improving our operating performance, including efforts to increase revenue and to continue to control costs in order to improve margins, return to consistent profitability and generate positive cash flows from operating activities. We believe that our existing cash and capital resources will be sufficient to meet all currently planned expenditures, debt service, contractual obligations and sustain operations for at least the next 12 months," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/jfA3V8 About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. Quantum Corporation incurred a net loss of $21.47 million on $553.16 million of total revenue for the year ended March 31, 2014, as compared with a net loss of $52.17 million on $587.43 million of total revenue for the year ended March 31, 2013. QUANTUM FUEL: Net Loss Down to $2.2 Million in Second Quarter ------------------------------------------------------------- Quantum Fuel Systems Technologies Worldwide, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to stockholders of $2.23 million on $6.53 million of revenue for the three months ended June 30, 2014, as compared with a net loss attributable to stockholders of $4.56 million on $6.07 million of revenue for the same period in 2013. The Company also reported a net loss attributable to stockholders of $5.43 million on $14.48 million of revenue for the six months ended June 30, 2014, as compared with a net loss attributable to stockholders of $11.46 million on $10.48 million of revenue for the same period last year. As of June 30, 2014, the Company had $72.42 million in total assets, $39.35 million in total liabilities and $33.07 million in total stockholders' equity. "Our principal sources of liquidity as of June 30, 2014 consisted of consolidated cash and cash equivalents of $10.2 million and $5.0 million of availability under our line of credit. Based on current assumptions and estimates, we believe we have sufficient available capital to cover our existing operations and obligations through at least June 30, 2015, and sufficient capital to fund the anticipated expansion of our manufacturing infrastructure. Our long-term future cash requirements will depend on numerous factors, including our revenue base, profit margins, product development activities, market acceptance of our products, future expansion plans and ability to control costs," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/11nPj1 About Quantum Fuel Lake Forest, Cal.-based Quantum Fuel Systems Technologies Worldwide, Inc. (Nasdaq: QTWW) develops and produces advanced vehicle propulsion systems, fuel storage technologies, and alternative fuel vehicles. Quantum's portfolio of technologies includes electronic and software controls, hybrid electric drive systems, natural gas and hydrogen storage and metering systems and other alternative fuel technologies and solutions that enable fuel efficient, low emission, natural gas, hybrid, plug-in hybrid electric and fuel cell vehicles. Quantum Fuel reported a net loss attributable to stockholders of $23.04 million in 2013, a net loss attributable to stockholders of $30.91 million in 2012 and a net loss attributable to common stockholders of $38.49 million in 2011. QVC INC: Fitch Retains 'BB' Issuer Default Rating ------------------------------------------------- Fitch Ratings has assigned a 'BBB-' rating to QVC Inc.'s proposed 10.5- and 20-year note offerings. Proceeds are expected to be used to redeem the remaining $769 million principal amount of 7.5% senior secured notes due October 2019, which become callable in October 2014 at 103.75. Any excess proceeds are expected to be used for general corporate purposes, including working capital. Fitch views the transaction as neutral to the credit profile as it is expected to be materially leverage neutral. The QVC notes' security package (including the proposed note offerings) mirrors the credit facility's security package. Both sets of instruments are pari passu with each other and benefit from a security interest in the capital stock of QVC and are guaranteed by QVC's material domestic subsidiaries. Under the credit agreement, priority debt (debt senior to the credit agreements and the notes) is limited to 50% of QVC EBITDA (an approximately $900 million limit). All other additional debt (either pari passu or subordinated to QVC's existing debt) is primarily limited by the 3.5x financial leverage covenant. Under the secured indentures (including the proposed note offering), additional indebtedness is limited by a 2x interest coverage incurrence test, with standard carve-outs. In addition, debt secured by QVC/QVC subsidiary assets is limited to $4.5 billion/$5 billion (currently there is no debt issued under this basket). Fitch notes that under the indenture documents, if QVC were to pledge the equity of its subsidiaries to secure debt in the future, the notes (and the credit facility under the bank agreement) would receive the security as well. Fitch does not expect this to happen. In addition to the debt limitations discussed above, the provisions of these notes include a 101% change of control offer that is triggered if 1) more than 30% of the voting power is acquired by a person other than a Permitted Holder (as defined), 2) such voting power exceeds the voting power of the Permitted Holders, and 3) QVC's secured notes are rated non-investment grade. As with the QVC secured indentures, in the event that the notes are rated investment grade (as defined), the limitations on debt, restricted payments and other provisions would fall away and would not be reinstated, regardless of any rating changes. Key Rating Drivers The ratings incorporate Liberty Interactive Corporation's July 2014 agreement to sell Provide Commerce Inc., excluding RedEnvelope, to FTD Companies, Inc., and decision to delay separation of the Liberty Interactive tracking stock (LINTA) into Liberty Digital Commerce (LDCA/B), which would have included the e-commerce companies attributed to it, and QVC (QVCA/B), which would hold QVC and the 38% HSN, Inc. stake. The ratings also reflect the October 2013 announcement that Liberty intends to spin-off its 22% equity/57% voting interest in TripAdvisor Inc. (TRIP) and its BuySeasons Inc. business, which is expected to be completed by August/September 2014. Fitch does not expect a delay in the TRIP spin-off. Fitch's ratings materially rely on QVC, with Liberty's other investments, such as TRIP, viewed as incremental support to the ratings. 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. The consolidated legal/obligor credit view (discussed above) may change over time if the Liberty Ventures (LVNT) assets become a more meaningful portion of the consolidated Liberty asset mix/equity value. At that point, Fitch may adopt a more hybrid rating analysis, taking into consideration the attribution of assets and liabilities within each tracking stock. Fitch does not expect this to occur in the near or intermediate term. The ratings reflect Fitch's expectation that the company will continue to manage QVC unadjusted gross leverage at 2.5x. As of June 30, 2014, Fitch calculates QVC's unadjusted gross leverage at 2.1x and Liberty's unadjusted gross leverage at 4.2x (excludes Trip Advisor's debt and EBITDA). While Fitch expects EBITDA growth would lead to reduced leverage, Fitch expects Liberty to manage leverage closer to its target levels over the long term. Currently, there is financial flexibility for debt- funded acquisition and/or share repurchases. Fitch rates both QVC's senior secured bank credit facility and the senior secured notes 'BBB-' (two notches higher than QVC's IDR). The secured issue rating reflects what Fitch believes would be QVC's standalone rating. The ratings incorporate the risk of continued acquisitions at Liberty Interactive. Fitch recognizes that there is risk of an acquisition of HSN, Inc. However, the ratings may remain unchanged depending on how the transaction is structured and on the company's commitment to returning QVC's leverage to 2.5x. Fitch recognizes QVC's ability to manage product mix and adapt to its customers' shopping preferences. QVC has managed to grow revenues over the last three years (up 1.7% YoY in the LTM period ended June 2014), and maintain Fitch-calculated EBITDA margins in the 20% to 22% range over that same timeframe. Fitch believes that QVC will be able to continue to grow revenues at least at GDP levels going forward, and models low- to mid-single-digit revenue growth at both QVC and at Liberty consolidated. QVC EBITDA margin fluctuation is driven in part by the product mix and will likely fluctuate over time as the product mixes change. However, Fitch believes, over the next few years, QVC's EBITDA margins will remain in this historical 20% to 22% range. Liquidity and Maturities Fitch believes liquidity at Liberty Interactive will be sufficient to support operations and QVC's expansion into other markets. Acquisitions and share buybacks are expected to be a primary use of free cash flow (FCF). In Fitch's view, there is sufficient liquidity and cash generation (from investment dividends and tax sharing between the tracking stocks) to support debt service and disciplined investment at LVNT. Fitch recognizes that in the event of a liquidity strain at LVNT, QVC could provide funding to support debt service (via intercompany loans), or the tracking stock structure could be collapsed. Fitch notes that cash can travel throughout all entities relatively easily (although the tracking stock structure adds a layer of complexity, Liberty LLC has in the past reattributed assets and liabilities). Fitch believes that resources at QVC would be used to support Liberty LLC, and vice versa, if ever needed. Liberty continues to carry meaningful liquidity: $1.2 billion in cash (ex-TRIP), $1.9 billion of availability on QVC's $2 billion revolver (expires March 2018), and $4.2 billion in other public holdings (ex-TRIP) as of June 30, 2014. Fitch calculates FCF of $951 million (ex-TRIP) in the LTM period ended June 30, 2014. Based on Fitch's conservative projections, Fitch expects Liberty's FCF to be in the range of $750 million to $1 billion. Liberty's near-term maturities include $400 million of 1% HSN exchangeable debentures that may be put to or redeemed by the company in 2016. QVC's next maturity, other than its credit facility in 2018, is $400 million aggregate principal of 3.125% senior secured notes due in 2019. Further, the 7.375% senior secured notes due 2020 become callable in April 2015 at 103.688%. Fitch believes Liberty has sufficient liquidity to handle these maturities and potential redemption. Other than the 2019 and 2020 notes, the remaining QVC notes' (including the new notes) call provisions are limited to make-whole provisions ranging from 25 bps-50 bps. Rating Sensitivities Positive Rating Actions: Fitch believes that the current financial policy is consistent with the current ratings. If the company were to manage to more conservative leverage targets, ratings may be upgraded. Negative Rating Actions: Conversely, changes to financial policy (including more aggressive leverage targets) and asset mix changes that weakened bondholder protection could pressure the ratings. While unexpected, revenue declines in excess of 10% that materially drove declines in EBITDA and FCF and resulted in QVC leverage exceeding 2.5x would likely pressure ratings. Fitch currently rates Liberty and QVC as follows: Liberty -- IDR 'BB'; -- Senior unsecured debt 'BB'. QVC -- IDR 'BB'; -- Senior secured debt 'BBB-'. The Rating Outlook is Stable. QVC INC: Moody's Affirms Ba3 CFR & Rates Sr. Secured Notes Ba2 -------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to QVC, Inc.'s proposed senior secured notes maturing in 2025 and 2034. QVC intends to utilize the net proceeds from the offering for the redemption of its 7.5% senior secured notes due 2019 and for working capital and other general corporate purposes. There is no change to the Ba3 Corporate Family Rating of Liberty Interactive, QVC's parent company. Assignments: QVC, Inc. New senior secured notes due 2025 at Ba2, LGD 3 New senior secured notes due 2034 at Ba2, LGD 3 LGD Revisions: QVC, Inc. Senior secured notes to LGD 3 from LGD 2 Liberty Interactive LLC Senior Unsecured LGD5 from LGD5 Ratings Rationale Liberty Interactive's Ba3 CFR reflects the good operating margins and cash flow generated from its portfolio of operating assets led by QVC, its moderate leverage with debt to EBITDA in the low four times range, and risk that its assets will be utilized in a manner that benefits shareholders more than bondholders. The rating also recognizes QVC's sizable position in the television shopping industry, its international expansion and strong capabilities in online shopping. The ratings also take into account the company's solid overall liquidity profile with its high cash balances and long term debt maturity profile. The stable rating outlook reflects Moody's expectation that LINTA will consider opportunistic transactions including share repurchases. Moody's also expect Liberty to retain a solid liquidity position and that the QVC business will continue to show stable performance, notwithstanding economic pressures in Europe where the company has a meaningful exposure. The stable rating outlook also reflects Moody's expectations that QVC will maintain debt/EBITDA within its target range of 2.0-2.5 times. The ratings could be downgraded if liquidity weakens, the asset composition or risk profile meaningfully changes, QVC's operating performance deteriorates meaningfully, or debt-to-EBITDA is sustained above 5.25x.In view of the company's history of aggressive financial policies, there is limited upward rating momentum in the near term. Over time maintaining balanced financial policies and continued meaningful debt reductions could lead to an upgrade. The principal methodology used in this rating was the Global Retail Industry published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Liberty Interactive Corporation (LINTA), headquartered in Englewood, Colorado, is a holding company that owns and operates QVC, a portfolio of e-commerce companies. It also holds significant equity positions in Expedia (Ba1/stable), HSN and other smaller issuers. QVC was founded in 1986 and has operations in the U.S., United Kingdom, Germany, Japan and Italy. QVC INC: S&P Affirms 'BB' Corporate Credit Rating ------------------------------------------------- Standard & Poor's Ratings Services assigned QVC Inc.'s proposed $750 million senior secured notes a 'BBB-' (two notches above S&P's corporate rating on the company) issue-level rating, with a recovery rating of '1', indicating its expectation for very high (90%-100%) recovery in the event of a payment default. The company will issue the proposed notes in two maturities, 2025 and 2034. The allocation of $750 million principal amount between the two maturities has not been determined. QVC will use net proceeds from the offering to redeem its 7.5% senior secured notes due October 2019 and for other general corporate purposes. QVC Inc. is a wholly owned subsidiary of Liberty Interactive Corp. and accounts for the vast majority of Liberty Interactive's revenues and EBITDA. S&P analyzes the entities on a consolidated basis. Consolidated adjusted debt leverage was 2.7x (net of S&P's estimate of excess cash) as of June 30, 2014. For 2014, S&P is expecting mid-single-digit percentage revenue and EBITDA growth at the Liberty Interactive level. S&P assumes moderate growth across most of QVC's markets, with some continuing softness in Japan. S&P expects that debt leverage will remain near the current level. RATINGS LIST QVC Inc. Corporate Credit Rating BB/Stable/-- New Rating QVC Inc. Senior Secured $750M notes due 2025 and 2034 BBB- Recovery Rating 1 RELIANCE INSURANCE: Sept. 19 Deadline to Respond to Bar Date Bid ---------------------------------------------------------------- The Commonwealth Court of Pennsylvania set Sept. 19, 2014, as the deadline for interested parties to file a response or objection to the request of the Liquidator of Reliance Insurance Company to establish a deadline for filing proofs of claim and for approval of notice. If the Court approves a Claims Bar Date, a proof of claim filed on or after the bar date will not be considered even if the claim is filed late for a reason constituted good cause under 40 P.S. Sec. 221.37. Any proof of claim filed before the bar date must identify, prior to the bar date, a specific claimant with specific and identified existing injuries or damages or it will be barred. In his application, Michael F. Consedine, Insurance Commissioner of the Commonwealth of Pennsylvania, in his capacity as Statutory Liquidator of RIC, disclosed that as of Dec. 31, 2013, the RIC estate has received a total of 160,544 proofs of claim. Of these, 11,829 were received after the Dec. 31, 2003 claim filing deadline. The Liquidator noted that because no Bar Date has been established, proofs of claim filed after the Dec. 2003 claim filing deadline may be considered timely filed if the claimant can show good cause for late filing pursuant to 40 P.S. Sec. 221.37. The Liquidator noted that only 1.3% of the 160,544 proof of claim filed through Dec. 31, 2013, remain to be processed. In addition, new proofs of claim have dwindled to 22 in the fourth quarter of 2013, down from 1,967 filed in the first quarter of 2004. The Liquidator also disclosed that as of the end of 2013, he had issued Notices of Determination or NODs for 158,438 of the 160,544 proofs of claim for a total allowed amount of $1.16 billion. The State court has approved 158,068 of those NODs at year end, for a total allowed amount of roughly $1.1 billion. A copy of the Liquidator's "Application to Establish a Claims Bar Date and for Approval of Notice" may be obtained at http://is.gd/luKXXQ Additional information may be obtained at: Liquidator-Bar Date Application Reliance Insurance Company (In Liquidation) Three Parkway, 5th Floor Pennsylvania, PA 19102 Tel: 215-864-4000 Fax: 215-864-4040 E-mail: liquidator@relianceinsurance.com About Reliance Insurance Reliance Insurance Company is subject to state liquidation proceedings pending before the Commonwealth Court of Pennsylvania in the Civil Action No. 1 REL 2001-(269 M.D. 2001) (Pa. Cmwlth. Ct.). A Pennsylvania-based insurance company, Reliance Insurance Company, was licensed to write insurance in all 50 states. The states with the largest number of policyholders included California, New York, Florida, Pennsylvania, Illinois and Texas. Reliance Insurance Company's insurance business consisted primarily of workers' compensation, commercial auto, commercial liability and personal auto coverage. Based in New York City, Reliance Group Holdings Inc. owns 100% of Reliance Financial Services Corporation. Reliance Financial, in turn, owns 100% of Reliance Insurance Company. The holding and intermediate finance companies filed for chapter 11 protection on June 12, 2001 (Bankr. S.D.N.Y. Case No. 01-13403) listing $12,598,054,000 in assets and $12,877,472,000 in debts. The insurance unit is being liquidated by order of the Commonwealth Court of Pennsylvania dated Oct. 3, 2001. The Bankruptcy Court confirmed the Creditors' Committee's Plan of Reorganization on Jan. 25, 2005. RESPONSE BIOMEDICAL: SVP World Wide Sales and Marketing Quits ------------------------------------------------------------- Timothy Shannon, senior vice president world wide sales and marketing of Response Biomedical Corp., informed the Company's Board of Directors that he was resigning effective Aug. 1, 2014. About Response Biomedical Based in Vancouver, Canada, Response Biomedical Corporation develops, manufactures and sells diagnostic tests for use with its proprietary RAMP(R) System, a portable fluorescence immunoassay- based diagnostic testing platform. The RAMP(R) technology utilizes a unique method to account for sources of error inherent in conventional lateral flow immunoassay technologies, thereby providing the ability to quickly and accurately detect and quantify an analyte present in a liquid sample. Consequently, an end-user on-site or in a point-of-care setting can rapidly obtain important diagnostic information. Response Biomedical currently has thirteen tests available for clinical and environmental testing applications and the Company has plans to commercialize additional tests. Response Biomedical reported a net loss and comprehensive loss of $5.99 million in 2013, a net loss and comprehensive loss of $5.28 million in 2012 and a net loss and comprehensive loss of $5.37 million in 2011. As of Dec. 31, 2013, the Company had $14.20 million in total assets, $15.68 million in total liabilities and a $1.48 million total shareholders' deficit. PricewaterhouseCoopers LLP, in Vancouver, British Columbia, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred recurring losses from operations and has an accumulated deficit at Dec. 31, 2013, that raises substantial doubt about its ability to continue as a going concern. ROME FINANCE: Soldiers' Consumer Debt Cleared In Shutdown --------------------------------------------------------- Law360 reported that Rome Finance Co., which financed purchases for some 18,000 soldiers across the country, has been shuttered by regulators for a slew of abuses in an action that returns service members $92 million in value, New York's attorney general said after joining state and federal authorities in an investigation. According to the report, the California- and Georgia-based lender, as well as its Colfax Capital Corp. and Culver Capital LLC affiliates, financed debt -- and guaranteed returns through access to soldiers' bank accounts -- but inflated prices for goods. SAN BERNARDINO, CA: Judge Accuses Fire Union of "Stonewalling" -------------------------------------------------------------- Steven Church, writing for Bloomberg News, reported that the firefighters of San Bernardino, California, are "stonewalling" negotiations in the California city's bankruptcy, said a federal judge, who refused to immediately give their union permission to sue in state court. According to the report, since the city filed for bankruptcy in 2012, the firefighters have fought over a variety of technical questions, including what rules should govern any contract-related negotiations. San Bernardino has said that if the firefighters reject its final offer, the city will ask Jury to cancel the current union contract, the report related. So far, however, it has been unable to meet with the firefighters to present the final offer, the report said. About San Bernardino, Calif. San Bernardino, California, filed an emergency petition for municipal bankruptcy under Chapter 9 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 12-28006) on Aug. 1, 2012. San Bernardino, a city of about 210,000 residents roughly 65 miles (104 km) east of Los Angeles, estimated assets and debts of more than $1 billion in the bare-bones bankruptcy petition. The city council voted on July 10, 2012, to file for bankruptcy. The move lets San Bernardino bypass state-required mediation with creditors and proceed directly to U.S. Bankruptcy Court. The city is represented that Paul R. Glassman, Esq., at Stradling Yocca Carlson & Rauth. San Bernardino joined two other California cities in bankruptcy: Stockton, an agricultural center of 292,000 east of San Francisco, and Mammoth Lakes, a mountain resort town of 8,200 south of Yosemite National Park. The City was granted Chapter 9 protection on Aug. 28, 2013. SANMINA CORP: Fitch Raises IDR to 'BB' & Rates 2019 Notes 'BB+' --------------------------------------------------------------- Fitch Ratings has upgraded the Issuer Default Rating (IDR) for Sanmina Corporation (Sanmina) to 'BB' from 'BB-'. The Rating Outlook is Stable. Fitch has also assigned a 'BB+' rating to Sanmina's senior secured notes due 2019. Sanmina's $375 million of senior secured 4.375% notes due June 2019 are legally subordinated to the company's first-lien senior secured revolving credit facility (RCF), resulting in the secured notes being rated one notch lower than the RCF rating of 'BBB-'. The ratings affect total pro forma debt of $515 million. A full list of rating actions follows at the end of this release. The ratings and Outlook reflect Fitch's expectations for improving operating performance through the intermediate term. Fitch anticipates the resumption of positive revenue growth, continued profit margin expansion, and solid free cash flow (FCF) following a challenging fiscal 2012 and 2013. Fitch expects increased penetration in emerging industrial, defense, and auto end-markets and intensified investments in the Components, Products, and Service segment (CPS) will drive solid mid-cycle revenue growth over the longer-term. This will offset inherent volatility in legacy communications end markets that still represent a significant share of revenues. For fiscal 2014, Fitch expects new product ramps and an improving macroeconomic environment will drive low- to mid-single digit revenue growth. The top line is recovering from supply constraints related to the Thai floods in fiscal 2012 and weak end demand in fiscal 2013. Fitch believes an increased mix of faster growing and higher gross margin CPS sales will drive mid-cycle profitability higher, although operating EBITDA margins will continue to range in the mid-single digits, consistent with the operating profile of the EMS industry. In the near term, Fitch expects operating EBITDA margins will exceed 5%, versus recent lows near mid-4%, due to higher utilization rates from the resumption of revenue growth and lower revenue break even profitability level from recent restructuring. Fitch expects annual FCF of $100 million to 200 million, driven by higher profitability. Longer-term visibility continues to be limited due to the volatility and project-oriented nature of legacy communications businesses. However, Fitch believes Sanmina will continue to generate free cash flow from lower working capital requirements during periods of softer demand. Sanmina will likely use FCF for opportunistic share repurchases and relatively modest-sized acquisitions, targeting new capabilities or customers. Fitch believes debt levels have stabilized, following the use of free cash flow over the past several years to meaningfully reduce debt associated with historical acquisitions. Sanmina's credit metrics should continue to remain strong for the rating, with total debt to operating EBITDA near or below 2 times (x) and FCF to total debt of more than 20% through the intermediate term. This compares to Fitch estimates of 2.2x and 36%, respectively, for the LTM ended June 28, 2014. Ratings Drivers Rating strengths include Sanmina's: -- Favorable industry trends toward increased outsourcing in underpenetrated markets for product design consultation, component sourcing, manufacturing, fulfillment logistics, and repair/reverse logistics. -- Significant capabilities in low volume, high mix design and assembly, positioning the company to gain share in non- traditional end markets. -- Consistent annual FCF from profitability expansion during positive demand environments and cash generation from lower working capital requirements in a downturn. Ratings concerns include: -- Low mid-cycle profit margins associated with the electronics manufacturing services model, resulting in minimal room for execution missteps. -- Ongoing volatility associated with roughly 45% of revenues coming from more project oriented legacy networking and communications end markets. -- Customer concentration with Sanmina's top 10 customers representing roughly 50% of revenue. Rating Sensitivities: Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- Higher focus revenue growth translating into mid-cycle FCF approaching $200 million or FCF approaching 3%; or -- Mid-cycle operating EBITDA structurally above 5% resulting in leverage remaining near or below 2x Positive rating action would result in the compression of notching for the secured debt ratings. Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- Profitability pressures (operating EBITDA approaching 4%) or debt financed acquisitions of manufacturing assets in order to win new business resulting in operating EBITDA in total Debt to operating EBITDA sustained above 3x; or -- Volatility in legacy markets resulting in mid-cycle FCF below $100 million Sanmina's liquidity was solid as of June 28, 2014, and supported by: -- $416 million of cash and short-term investments pro forma for the redemption of $136 million of senior unsecured notes on July 7, 2014; -- $277 million available net of $22.7 million in letters of credit under a $300 million senior secured asset-backed credit facility due March 2017. Fitch's expectations for $100 million to $200 million of annual free cash flow through the intermediate-term also supports liquidity. Pro forma total debt was $515 million as of July 7, 2014 and consisted of: -- $40 million loan secured by the company's corporate campus due July 2015; -- $100 million of senior unsecured notes due May 2019, pro forma for redemption of $136 million on July 7, 2014; and -- $375 million of senior secured 4.375% notes due June 2019. Fitch has upgraded the following ratings for Sanmina: -- Long-term IDR to 'BB' from 'BB-'; -- Senior secured credit facility rating to 'BBB-' from 'BB+'; -- Senior unsecured notes rating to 'BB' from 'BB-'; The Rating Outlook is Stable. SANUWAVE HEALTH: Widens Loss to $1.7 Million in Second Quarter -------------------------------------------------------------- SANUWAVE Health, Inc., reported a net loss of $1.69 million on $238,115 of revenue for the three months ended June 30, 2014, as compared with a net loss of $818,331 on $160,617 of revenue for the same period in 2013. "We achieved a significant milestone for SANUWAVE in the second quarter with the 90th patient being enrolled in the dermaPACE clinical trial and now having completed the 12 week efficacy assessment period," stated Kevin A. Richardson, II, Chairman of the board of directors. "We anticipate having the feedback from the Data Monitoring Committee regarding the first 90 patients in September and look forward to updating shareholders at that time. We have continued to enroll patients in the dermaPACE(R) clinical trial for treating diabetic foot ulcers and remain focused on completing the trial as soon as possible to address this $3 billion market opportunity in the United States." Net loss for the three months ended June 30, 2014, was $1,693,650, or ($0.03) per basic and diluted share, compared to a net loss of $818,331, or ($0.04) per basic and diluted share, for the same period in 2013, an increase in the net loss of $875,319, or 107%. The increase in the net loss was primarily a result of the one- time non-cash gain of $2,328,000 in other income in 2013 for the embedded conversion feature of the Senior Secured Notes which were converted to equity in the third quarter of 2013, offset by accrued interest expense on the Senior Secured Notes. Revenue for the three months ended June 30, 2014, was $238,115, compared to $160,617 for the same period in 2013, an increase of $77,498, or 48%. The increase in revenue for 2014 was due to higher sales of orthoPACE devices in 2014 in Asia/Pacific, as compared to the prior year, as well as higher sales of refurbished applicators in Europe. As of June 30, 2014, the Company had $7.37 million in total assets, $6.32 million in total liabilities and $1.04 million in total stockholders' equity. On June 30, 2014, the Company had cash and cash equivalents of $6,153,055 compared with $182,315 as of Dec. 31, 2013. A full-text copy of the press release is available for free at: http://is.gd/0CrV5E A full-text copy of the Form 10-Q is available for free at: http://is.gd/5StjI9 About SANUWAVE Health Alpharetta, Ga.-based SANUWAVE Health, Inc., is an emerging global regenerative medicine company focused on the development and commercialization of noninvasive, biological response activating devices for the repair and regeneration of tissue, musculoskeletal and vascular structures. SANUWAVE reported a net loss of $11.29 million in 2013, a net loss of $6.40 million in 2012 and a net loss of $10.23 million in 2011. SEANERGY MARITIME: Incurs $759,000 Net Loss in Second Quarter ------------------------------------------------------------- Seanergy Maritime Holdings Corp. reported a net loss of $759,000 on $0 of net vessel revenue for the three months ended June 30, 2014, as compared with a net loss of $14.76 million on $6.80 million of net vessel revenue for the same period in 2013. The Company also reported net income of $82.74 million on $2.01 million of net vessel revenue for the six months ended June 30, 2014, as compared with a net loss of $13.70 million on $12.45 million of net vessel revenue for the same period last year. As of June 30, 2014, the Company had $3.52 million in total assets, $554,000 in total liabilities and $2.96 million in total shareholders' equity. Stamatis Tsantanis, the Company's chairman & chief executive officer, stated, "Following the conclusion of the financial restructuring process in March 2014, we have focused entirely on completing all the necessary steps in order to finalize the previously announced acquisition of four Capesize vessels by the end of the third quarter of 2014. "Additionally, we have worked to ensure the Company's continued compliance with the NASDAQ minimum equity listing requirement, which has been achieved. As part of this effort, certain of our major shareholders contributed the amount of $1.1 million in return for newly issued common shares of Seanergy in June 2014. The Company ended the second quarter of 2014 with $2.7 million in cash and cash equivalents. A full-text copy of the press release is available for free at: http://is.gd/zPP751 About Seanergy Athens, Greece-based Seanergy Maritime Holdings Corp. is an international company providing worldwide seaborne transportation of dry bulk commodities. The Company owns and operates a fleet of seven dry bulk vessels that consists of three Handysize, two Supramax and two Panamax vessels. Its fleet carries a variety of dry bulk commodities, including coal, iron ore, and grains, as well as bauxite, phosphate, fertilizer and steel products. Seanergy Maritime reported net income of $10.90 million on $23.07 million of net vessel revenue for the year ended Dec. 31, 2013, as compared with a net loss of $193.76 million on $55.61 million of net vessel revenue for the year ended Dec. 31, 2012. Ernst & Young (Hellas) Certified Auditors Accountants S.A., in Athens, Greece, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company, as of December 31, 2013 continued to be in breach of certain terms and covenants of the loan facility with its remaining lender, and had a working capital deficit and an accumulated deficit. Following the disposal of its entire fleet subsequent to December 31, 2013 in the context of its restructuring plan, the Company is unable to generate sufficient cash flow to meet its obligations and sustain its continuing operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. SEETARAM LLC: Case Summary & 12 Unsecured Creditors --------------------------------------------------- Debtor: Seetaram LLC dba Putnam Fuel Depot 2 Grove Street. Putnam, CT 06260 Case No.: 14-21585 Chapter 11 Petition Date: August 7, 2014 Court: United States Bankruptcy Court District of Connecticut (Hartford) Judge: Hon. Albert S. Dabrowski Debtor's Counsel: Peter L. Ressler, Esq. GROOB RESSLER & MULQUEEN, PC 123 York Street, Ste 1B New Haven, CT 06511-0001 Tel: (203) 777-5741 Fax: (203) 777-4206 Email: ressmul@yahoo.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Daya Singh, managing member. A list of the Debtor's 12 largest unsecured creditors is available for free at http://bankrupt.com/misc/ctb14-21585.pdf SHIMOJI FAMILY: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: The Shimoji Family Trust 14955 Gulf Blvd, Ste 18 Saint Petersburg, FL 33708 Case No.: 14-09170 Nature of Business: Trust Chapter 11 Petition Date: August 7, 2014 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Paul DeCailly, Esq. DECAILLY LAW GROUP, P.A. 19455 Gulf Boulevard, Suite 8 Indian Shores, FL 33785 Tel: 727-824-7709 Fax: (866) 906-5977 Email: pdecailly@dlg4me.com Total Assets: $605,505 Total Liabilities: $2.11 million The petition was signed by Charlene Diefel, trustee. A list of the Debtor's four largest unsecured creditors is available for free at http://bankrupt.com/misc/flmb14-09170.pdf SINCLAIR BROADCAST: Files Form 10-Q, Reports $41.6MM Income in Q2 ----------------------------------------------------------------- Sinclair Broadcast Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $41.60 million on $455.13 million of total revenues for the three months ended June 30, 2014, as compared with net income of $18.05 million on $314.15 million of total revenues for the same period last year. The Company also reported net income of $69.25 million on $867.78 million of total revenues for the six months ended June 30, 2014, as compared with net income of $34.92 million on $596.77 million of total revenues for the same period in 2013. The Company's balance sheet at June 30, 2014, the Company had $4.18 billion in total assets, $3.81 billion in total liabilities and $370.17 million in total equity. As of June 30, 2014, the Company had $395.5 million in cash and cash equivalent balances and net working capital of approximately $426.3 million. A full-text copy of the Form 10-Q is available for free at: http://is.gd/KEVLqI About Sinclair Broadcast Based in Baltimore, Maryland, Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) -- http://www.sbgi.net/-- one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches roughly 22 percent of U.S. television households and includes FOX, ABC, CBS, NBC, MNT, and CW affiliates. Sinclair Broadcast reported net income of $75.81 million in 2013, as compared with net income of $144.95 million in 2012. * * * As reported by the TCR on Feb. 24, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on Sinclair to 'BB-' from 'B+'. The rating outlook is stable. "The 'BB-' rating on Sinclair reflects S&P's expectation that the company could keep its lease-adjusted debt to EBITDA below historical levels throughout the election cycle, absent a reversal of economic growth, meaningful debt-financed acquisitions, or significant shareholder-favoring measures," explained Standard & Poor's credit analyst Deborah Kinzer. In September 2010, Moody's raised its ratings for Sinclair Broadcast and subsidiary Sinclair Television Group, including the Corporate Family Rating and Probability-of-Default Rating, each to Ba3 from B1, and the ratings for individual debt instruments. Moody's also assigned a B2 (LGD 5, 87%) rating to the proposed $250 million issuance of Senior Unsecured Notes due 2018 by STG. The Speculative Grade Liquidity Rating remains unchanged at SGL-2. The rating outlook is now stable. SPRINGLEAF FINANCE: Fitch Raises LT Issuer Default Rating to 'B' ---------------------------------------------------------------- Fitch Ratings has upgraded the long-term Issuer Default Rating (IDR) and senior unsecured debt ratings of Springleaf Finance Corporation (Springleaf) to 'B' from 'B-' and maintained the Stable Rating Outlook. Fitch has also upgraded the preferred stock ratings of AGFC Capital Trust I to 'CCC/RR6' from 'CC/RR6'. Key Rating Drivers The rating upgrades reflect the progress made by Springleaf toward repaying debt, improving its debt maturity profile and furthering core profitability while growing its consumer lending business. Fitch also believes that today's announced sale of Springleaf's interests in approximately $7.2 billion of legacy mortgage assets and related servicing for net cash proceeds of approximately $3.0 billion will simplify the company's balance sheet and remove a source of earnings volatility. That said, further upward ratings momentum will depend on increased clarity regarding the use of sale proceeds which could potentially include debt repayment, acquisitions, and shareholder distributions. Additional rating constraints include Springleaf's monoline business model, material regulatory risk, above-average growth, high reliance on the capital markets for funding, concentrated ownership structure, and higher-risk core demographic, which may be particularly sensitive in a rising interest rate environment. Springleaf has made significant progress toward reducing its debt load. Over the last year the company prepaid ($2 billion) and terminated its secured term loan while also making progress toward reducing its 2017 unsecured debt maturity wall. At March 31, 2014, 2017 unsecured debt maturities were $2.4 billion, down from $3.3 billion at June 30, 2013. Fitch views these actions favorably as they have reduced leverage and improved the company's debt maturity profile. Fitch believes the company has adequate sources of liquidity to originate new loans and meet its debt obligations through 2017. That said, the company's ability to meet its remaining 2017 maturities could come under pressure if a significant portion of the company's unrestricted cash is deployed to make acquisitions and/or fund shareholder distributions. Pro forma for the sale of the majority of Springleaf's legacy mortgage assets, Fitch estimates the company would have had approximately $4 billion of unrestricted cash at March 31, 2014, which could be used to repay debt, fund shareholder distributions, make acquisitions and/or support new loan originations. Springleaf's leverage, as calculated by Fitch, has improved over the past several quarters. Leverage, as measured by adjusted debt- to-adjusted tangible equity, declined to 6.2x at March 31, 2014 from 8.2x at June 30, 2013. However, reported leverage is calculated on a push-down accounting basis following the majority sale of Springleaf to Fortress Investment Group LLC from American International Group, Inc. in 2010. Fitch also calculates leverage on a historical cost basis, which adds back the asset and debt discounts recorded as part of the application of push-down accounting. On this basis, Fitch estimates leverage declined to 8.4x at March 31, 2014, down from 9.4x at June 30, 2013. Pro forma for the sale of mortgage assets, Fitch estimates leverage, including historical cost adjustments, was under 5.0x at March 31, 2014. Under all of these metrics, Fitch views Springleaf's leverage as improved, although it is less clear whether leverage will remain at existing levels going forward. Credit performance has continued to normalize from trough levels experienced post-financial crisis. Net charge-offs within the company's consumer segment rose to 5.1% in 2Q'14, up from 3.2% (excluding the sale of previously charged-off receivables in June 2013) in the year-ago period. Total consumer delinquencies were 2.28% at June 30, 2014, up from 1.92% in the year-ago period. Fitch believes the increase in charge-offs and delinquencies reflects a modest loosening of underwriting standards from more conservative levels post-crisis combined with loan seasoning. Charge-offs also remain in line with the company's long-term historical average of between 4.75% and 5.75%. That said, the company continues to generate strong growth in personal loan originations. If not prudently managed, Fitch believes above- average growth could potentially lead to higher than expected losses in the future. The Stable Outlook reflects Fitch's view that Springleaf's liquidity profile and leverage have improved and that operating performance will continue to gradually improve, absent a market stress. These positive factors are counterbalanced by elevated regulatory risk, Fitch's expectation that credit performance will continue to normalize, as well as the incremental risk associated with the company's expansion into direct auto lending. Furthermore, Fitch will assess any potential changes to Springleaf's business model and/or risk profile as the company deploys the cash proceeds generated from the sale of its mortgage assets. The Recovery Rating of 'RR4' assigned to Springleaf's senior unsecured debt reflects Fitch's expectation that recovery prospects for the notes are average, and could be approximately between 31%-50% in a stress scenario. The Recovery Rating of 'RR6' assigned to the preferred stock of AGFC Capital Trust I reflects Fitch's expectation that recovery prospects for the securities are poor, and could be as low as 0%-10% in a stress scenario. Rating Sensitivities Longer-term positive rating momentum could be driven by additional actions to improve the debt maturity profile, sustained improvements in profitability and operating performance, measured growth in core lending businesses, successfully executing on new business opportunities, and reducing concentrated ownership while maintaining leverage at levels in-line with similar nonprime consumer finance companies. However, potential upward momentum would remain limited to below investment-grade level, given Springleaf's monoline business model, core demographic, high reliance on the capital markets for funding. Furthermore, Fitch views the elevated regulatory, legislative and litigation risks that exist for Springleaf, as well as a lack of prudential regulation as key rating constraints. Negative ratings momentum could develop from an inability to access the capital markets for funding at reasonable costs, substantial credit quality deterioration, potential new and more onerous rules and regulations, as well as potential shareholder- friendly actions given the high private equity ownership. These factors could also potentially result in notching the senior unsecured rating below the current IDR. Fitch has upgraded the following ratings: Springleaf Finance Corporation -- Long-term IDR to 'B' from 'B-'; -- Senior unsecured debt to 'B/RR4' from 'B-/RR4'. AGFC Capital Trust I -- Preferred stock to 'CCC/RR6' from 'CC/RR6'. The Rating Outlook is Stable. SPRINGLEAF HOLDINGS: Moody's Puts B3 CFR on Review for Upgrade -------------------------------------------------------------- Moody's Investors Service placed the B3 corporate family rating of Springleaf Holdings, Inc. (Springleaf) and the B3 senior unsecured rating of operating subsidiary Springleaf Finance Corporation (SFC) on review for upgrade. Ratings Rationale The rating action follows the company's announcement that it will sell most of its $8 billion non-core real estate portfolio, including $5.5 billion of residential mortgage-backed securities and $1.7 billion of whole loans, and associated loan servicing. Springleaf expects the transaction, projected to close by the end of third quarter of this year, to generate approximately $3 billion of net cash proceeds and pre-tax gains between $575 to $625 million. Springleaf's sale of real estate assets could meaningfully improve the company's overall profitability and reduce earnings volatility. To date, the non-core real estate portfolio has generated substantial losses, creating a drag on the company's profitability. Springleaf's performance post-sale will be driven by its core branch-based personal lending business, which provides higher risk-adjusted returns than the home lending. $0.8 billion of real estate assets not sold by Springleaf as part of the transaction have higher average yields and a cushion to absorb underperformance, which moderates the risks to overall profitability of this wind-down portfolio. In addition, the transaction deleverages the balance sheet by reducing total debt by $3.6 billion, all of which is related to the RMBS securitizations associated with the assets identified for sale. The remaining debt balance translates into pro-forma leverage of 3.7x, as compared to 6.7x at March 31, 2014. Moody's review will focus on Springleaf's deployment of the sale proceeds and resulting impact on leverage, the risk characteristics of the remaining unsold real estate portfolio and the extent of residual liabilities, as well as the operating prospects of the core personal lending business. The review will also consider longer-term credit implications of Springleaf's expansion plans in online lending, which Moody's views as an increase in risk appetite, newly-launched direct auto lending, as well as the company's funding and liquidity profiles. A summary of the action follows: Springleaf Holdings, Inc.: Corporate Family: B3 rating placed on review for upgrade Springleaf Finance Corporation: LT Issuer: B3 rating placed on review for upgrade Senior Unsecured: B3 rating placed on review for upgrade Senior Unsecured MTN Program: (P)B3 rating placed on review for upgrade Senior Unsecured Shelf: (P)B3 rating placed on review for upgrade AGFC Capital Trust I: Preferred Stock: Caa2(hyb) rating placed on review for upgrade Springleaf Holdings, Inc., through principal operating subsidiary Springleaf Finance Corporation, provides consumer finance and credit insurance products to consumers through a multi-state branch network. SUN BANCORP: Files Form 10-Q Reporting $24.2 Million Q2 Loss ------------------------------------------------------------ Sun Bancorp, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common shareholders of $24.24 million on $23.77 million of total interest income for the three months ended June 30, 2014, as compared with net income available to common shareholders of $678,000 on $25.71 million of total interest income for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss available to common shareholders of $26.15 million on $48.41 million of total interest income as compared with net income available to common shareholders of $3.13 million on $52.79 million of total interest income for the same period last year. The Company's balance sheet at June 30, 2014, showed $2.89 billion in total assets, $2.66 billion in total liabilities and $227.65 million in total shareholders' equity. Cash and cash equivalents at June 30, 2014, was $330.44 million. A full-text copy of the Form 10-Q is available for free at: http://is.gd/GRjTWs About Sun Bancorp Sun Bancorp, Inc. (NASDAQ: SNBC) is a bank holding company headquartered in Vineland, New Jersey, with its executive offices located in Mt. Laurel, New Jersey. Its primary subsidiary is Sun National Bank, a full service commercial bank serving customers through more than 60 locations in New Jersey. On April 15, 2010, Sun National Bank entered into a written agreement with the OCC which contained requirements to develop and implement a profitability and capital plan which provides for the maintenance of adequate capital to support the Bank's risk profile in the current economic environment. Sun Bancorp reported a net loss available to common shareholders of $9.94 million in 2013, a net loss available to common shareholders of $50.49 million in 2012, and a net loss available to common shareholders of $67.50 million in 2011. SUNTECH POWER: Acting Chief Financial Officer Departs ----------------------------------------------------- Suntech Power Holdings Co., Ltd.'s Joint Provisional Liquidators said Aug. 5 that Deyong He, acting Chief Financial Officer (?CFO?) of the Company, on June 25, 2014, submitted a letter of resignation, effective July 1, 2014. Mr. He will maintain his position as a member of the Board of Directors of the Company. With the departure of Mr. He, the Company?s global accounting functions will leverage off existing resources, as directed by the JPLs. The JPLs are proposing to restructure the Company?s global accounting functions, and manage the functions of the CFO until a candidate is selected to fill the vacancy. About Suntech Wuxi, China-based Suntech Power Holdings Co., Ltd., produces solar products for residential, commercial, industrial, and utility applications. Suntech has delivered more than 25,000,000 photovoltaic panels to over a thousand customers in more than 80 countries. Suntech Power Holdings Co., Ltd., received from the trustee of its 3 percent Convertible Notes a notice of default and acceleration relating to Suntech's non-payment of the principal amount of US$541 million that was due to holders of the Notes on March 15, 2013. That event of default has also triggered cross-defaults under Suntech's other outstanding debt, including its loans from International Finance Corporation and Chinese domestic lenders. Suntech Power had involuntary Chapter 7 bankruptcy proceedings initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by holders of more than $1.5 million of defaulted securities under a 2008 $575 million indenture. The Chapter 7 Petitioners are Trondheim Capital Partners, L.P., Michael Meixler, Longball Holdings, LLC, and Jiangsu Liquidators, LLC. They are represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP, in White Plains, New York. Suntech Power on Jan. 31, 2014, disclosed that it has signed a Restructuring Support Agreement relating to the petition for involuntary bankruptcy filed against it under chapter 7 of the U.S. Bankruptcy Code. Under the RSA, the parties agreed that chapter 7 proceedings will be dismissed following recognition of the provisional liquidation proceeding previously filed by the Company in the Cayman Islands under chapter 15 of the U.S. Bankruptcy Code. On Feb. 21, 2014, David Walker and Ian Stokoe, the joint provisional liquidators of Suntech Power Holdings Co., Ltd., appointed by the Grand Court of the Cayman Islands, commenced a Chapter 15 proceeding (Bankr. S.D.N.Y. Case No. 14-10383). The Chapter 15 Petitioners are represented by Jennifer Taylor, Esq., and Diana Perez, Esq., at O'Melveny & Myers LLP. According to the Chapter 15 petition, Suntech has more than $1 billion in both assets and debts. TERRAFORM POWER: S&P Assigns 'BB-' CCR & Rates $300MM Loan 'BB' --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to TerraForm Power Inc. At the same time, Standard & Poor's assigned its 'BB' issue-level rating to subsidiary TerraForm Power Operating LLC's $300 million senior secured term loan B due 2019. The recovery rating is '2', indicating that lenders can expect substantial (70% to 90%) recovery if a default occurs. The outlook is stable. The company owns a portfolio of 23 solar power projects operating or in late-stage construction with nameplate capacity of 808 megawatts. The projects are in four countries -- the U.S. (63% of estimated 2015 EBITDA), the U.K. (17%), Canada (13%), and Chile (7%). The ratings on Terraform reflect its 'bb-' stand-alone credit profile. S&P believes its business risk profile is "weak." S&P bases this primarily on the company's small scale and limited fuel diversity, which is only partially offset by its cash flow stability stemming from long-term fee-based power purchase agreements with highly rated counterparties. TerraForm's "significant" financial risk profile incorporates S&P's view of the company's moderate financial leverage, material dependence on upstream dividends from assets with structurally senior project- level debt, and the "yieldco" structure that gives management a lot of incentive to pay out most available free cash flow to investors after maintenance capital spending. "However, in our view, TerraForm benefits from structural protections, allowing the rating to be higher than those on its parent company. A non-consolidation opinion supports our view that TerraForm is severable from its parent, holds itself out as a separate entity, and would not be materially affected by financial distress at SunEdison. In addition, TerraForm's independent directors must approve any form of bankruptcy proceedings, disposal of material assets, and initiation of transactions between TerraForm and SunEdison. Although the two companies have multiple support agreements, we believe third-party providers could step in without material disruption to TerraForm's operational or financial risk profile. At this time, SunEdison's creditworthiness does not constrain our corporate credit rating on TerraForm," S&P said. The stable outlook on TerraForm reflects S&P's expectation for minimal merchant price risk and debt to EBITDA in the 3x to 3.5x range. Apart from a reassessment of SunEdison's group credit profile, S&P could lower the ratings on TerraForm if the company begins to assume more significant merchant price risk or if credit measures weaken such that debt to EBITDA rises above 4.5x. Absent an upgrade of SunEdison's group credit profile, S&P would not envision upgrading TerraForm because of the link between the two companies. THERAPEUTICSMD INC: Incurs $10.9 Million Net Loss in 2nd Quarter ---------------------------------------------------------------- TherapeuticsMD Inc. reported a net loss of $10.89 million on $3.75 million of net revenues for the three months ended June 30, 2014, as compared with a net loss of $6 million on $2.08 million of net revenues for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss of $20.08 million on $6.58 million of net revenues as compared with a net loss of $12.38 million on $3.61 million of net revenues for the six months ended June 30, 2013. As of June 30, 2014, the Company had $44.43 million in total assets, $6.94 million in total liabilities and $37.48 million in total stockholders' equity. At June 30, 2014, TherapeuticsMD had cash of approximately $35.6 million, compared to approximately $54.2 million at Dec. 31, 2013. The Company recently completed a public offering of shares of its common stock for gross proceeds of approximately $46 million. The proceeds will be used toward development of the Company's late- stage pipeline of novel hormone therapies and to support advancement of its earlier stage and preclinical programs. "During the second quarter, we continued recruitment in the ongoing REPLENISHTM phase 3 study for our combination hormone therapy pill, engaged a contract research organization to start up our phase 3 study of VagiCap in the VVA indication, and strengthened our intellectual property position with notification of two new patent allowances," said TherapeuticsMD CEO Robert G. Finizio. "More recently, we've solidified our cash position through a recent equity offering, providing us with additional resources to advance our ongoing programs and support our earlier stage pipeline, including novel transdermal product opportunities that leverage our proprietary SYMBODA technology." A full-text copy of the press release is available for free at: http://is.gd/tTcVOG About TherapeuticsMD Boca Raton, Florida-based TherapeuticsMD, Inc. (OTC QB: TXMD) is a women's healthcare product company focused on creating and commercializing products targeted exclusively for women. The Company currently manufactures and distributes branded and generic prescription prenatal vitamins as well as over-the-counter vitamins and cosmetics. The Company is currently focused on conducting the clinical trials necessary for regulatory approval and commercialization of advanced hormone therapy pharmaceutical products designed to alleviate the symptoms of and reduce the health risks resulting from menopause-related hormone deficiencies. TherapeuticsMD reported a net loss of $28.41 million in 2013, a net loss of $35.12 million in 2012, and a net loss of $12.9 million in 2011. In the auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2012, Rosenberg Rich Baker Berman & Company, in Somerset, New Jersey, expressed substantial doubt about TherapeuticsMD's ability to continue as a going concern, citing the Company's loss from operations of approximately $16 million and negative cash flow from operations of approximately $13 million. TMT GROUP: CEO Casts $100M IP Suit Over Vessel Sale --------------------------------------------------- Law360 reported that the CEO of troubled Taiwanese shipping firm TMT Group launched a suit in Texas federal court, alleging that a planned bankruptcy sale of three company ships to Mega International Commercial Bank Co. Ltd. will strip him of intellectual property worth more than $100 million. According to the report, Hsin-Chi Su, who also goes by Nobu Su, said in a lawsuit filed in Houston that U.S. Bankruptcy Judge Marvin Isgur recently signed off on a sale of the ships to Mega Bank, a major creditor of TMT, without adequately protecting his interest in the boats' patented technology. The case is Su v. Mega International Commercial Bank Co. Ltd., case number 4:14-cv-02166, in the U.S. District Court for the Southern District of Texas. About TMT Group Known in the industry as TMT Group, TMT USA Shipmanagement LLC and its affiliates own 17 vessels. Vessels range in size from approximately 27,000 dead weight tons (dwt) to approximately 320,000 dwt. TMT USA and 22 affiliates, including C. Ladybug Corporation, sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13- 33740) in Houston, Texas, on June 20, 2013 after lenders seized seven vessels. TMT filed a lawsuit in U.S. bankruptcy court aimed at forcing creditors to release the vessels so they can return to generating income. TMT has tapped attorneys from Bracewell & Giuliani LLP as bankruptcy counsel and AlixPartners as financial advisors. On a consolidated basis, the Debtors have $1.52 billion in assets and $1.46 billion in liabilities. TJ MCGLONE: Withholding Taxes Can't Be Dumped In Bankruptcy ----------------------------------------------------------- Law360 reported that New Jersey's Tax Court ruled that the head of a bankrupt construction company must pay over $175,000 to satisfy his company's past due withholding taxes because the sums aren't dischargeable in bankruptcy. According to the report, T.J. McGlone & Co. Inc. president Daniel McGlone said his company's Chapter 7 liquidation wiped out any tax debts and also argued that the state waited too long to file its claim, but the state tax court disagreed, saying state and federal law clearly establishes that the money isn't dischargeable. TRANSGENOMIC INC: Incurs $4.2 Million Net Loss in Second Quarter ---------------------------------------------------------------- Transgenomic, Inc., reported a net loss available to common stockholders of $4.19 million on $6.76 million of net sales for the three months ended June 30, 2014, as compared with a net loss available to common stockholders of $3.04 million on $7.30 million of net sales for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss available to common stockholders of $8.60 million on $13.01 million of net sales as compared with a net loss available to common stockholders of $6.81 million on $14.68 million of net sales for th same period in 2013. The Company's balance sheet at June 30, 2014, showed $31.09 million in total assets, $20.74 million in total liabilities and $10.35 million in stockholders' equity. Cash and cash equivalents were $1.2 million as of June 30, 2014, compared with $1.6 million as of Dec. 31, 2013. After the close of the quarter, in July 2014, the Company sold the rights to its SURVEYOR Nuclease technology and assets for a minimum of $4.25 million. The net proceeds from this sale will be used to pay down debt under the Company's revolving credit facility, which may be redrawn as needed, and for working capital and other general corporate purposes. Paul Kinnon, president and chief executive officer of Transgenomic, commented, "During the second quarter, we continued to make progress putting in place the elements needed to reach our goal of creating a revitalized company. Operationally, our patient testing business continues to show renewed strength, with revenues again growing sequentially quarter over quarter. We expect that this trend will continue in the third quarter, along with growth from new projects in our contract services laboratory." A full-text copy of the press release is available for free at: http://is.gd/ReLO47 A full-text copy of the Form 10-Q filed with the U.S. Securities and Exchange Commission is available for free at: http://is.gd/G77ebz About Transgenomic Transgenomic, Inc. -- http://www.transgenomic.com/-- is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases through its proprietary molecular technologies and world-class clinical and research services. The Company is a global leader in cardiac genetic testing with a family of innovative products, including its C-GAAP test, designed to detect gene mutations which indicate cardiac disorders, or which can lead to serious adverse events. Transgenomic has three complementary business divisions: Transgenomic Clinical Laboratories, which specializes in molecular diagnostics for cardiology, oncology, neurology, and mitochondrial disorders; Transgenomic Pharmacogenomic Services, a contract research laboratory that specializes in supporting all phases of pre-clinical and clinical trials for oncology drugs in development; and Transgenomic Diagnostic Tools, which produces equipment, reagents, and other consumables that empower clinical and research applications in molecular testing and cytogenetics. Transgenomic believes there is significant opportunity for continued growth across all three businesses by leveraging their synergistic capabilities, technologies, and expertise. The Company actively develops and acquires new technology and other intellectual property that strengthens its leadership in personalized medicine. The Company reported a net loss available to common stockholders of $16.71 million in 2013, a net loss available to common stockholders of $8.98 million in 2012 and a net loss available to common stockholders of $10.79 million in 2011. TRAVELPORT LIMITED: Reports $4MM Net Income in Second Quarter ------------------------------------------------------------- Travelport Limited filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to the Company of $4 million on $551 million of net revenue for the three months ended June 30, 2014, compared to a net loss attributable to the Company of $105 million on $537 million of net revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss attributable to the Company of $25 million on $1.12 billion of net revenue as compared with a net loss attributable to the Company of $115 million on $1.08 billion of net revenue for the same period last year. As of June 30, 2014, Travelport Limited had $3.01 billion in total assets, $4.08 billion in total liabilities and a $1.06 billion total deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/lUb4sf About Travelport Holdings Headquartered in Atlanta, Georgia, Travelport provides transaction processing services to the travel industry through its global distribution system business, which includes the group's airline information technology solutions business. During FYE2011, the group reported revenues and adjusted EBITDA of US$2 billion and US$507 million, respectively. For the year ended Dec. 31, 2013, the Company reported a net loss attributable to the Company of $192 million on $2.07 billion of net revenue as compared with a net loss attributable to the Company of $236 million on $2 billion of net revenue in 2012. The Company's balance sheet at Dec. 31, 2013, showed $3.08 billion in total assets, $4.39 billion in total liabilities and a $1.31 billion total deficit. * * * As reported by the TCR on May 1, 2013, Standard & Poor's Ratings Services said that it raised its long-term corporate credit ratings on Travelport Holdings Ltd. and indirect primary operating subsidiary Travelport LLC (together, Travelport) to 'CCC+' from 'SD' (selective default). The rating action follows S&P's review of Travelport's business and financial risk profiles after it downgraded the group to 'SD' on April 16, 2013. UNIVERSAL HEALTH: S&P Keeps BB+ Rating on Amended Credit Facility ----------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'BB+' issue-level rating on Universal Health Services Inc.'s amended and extended credit facility is unchanged following a broad refinancing plan that is leverage neutral. The facility includes a $800 million revolver and a $1.775 billion term loan A. The recovery rating on these obligations is '2', reflecting S&P's expectation of substantial (70%-90%) recovery in the event of default. Universal Health Services owns and/or operates 24 acute care hospitals and 193 behavioral health centers across more than 35 sates. The company also manages, owns outright, or owns in partnership with physicians, five surgical hospitals, and surgery and radiation oncology centers. The benefits of diversification between the acute care and behavioral health business segments, positive historical trends, strong margins in the behavioral health business, as well as reimbursement risk and pockets of geographic concentration underpin our "fair" business risk profile. Its "intermediate" financial risk profile is supported by leverage of about 2.4x. S&P's positive outlook on the corporate credit rating reflects the potential for an upgrade within one year if it gains further confidence in the company's commitment to generally maintaining debt leverage below 3x. RATINGS LIST Universal Health Services Inc. Corporate Credit Rating BB/Positive Senior Secured $800 million revolver BB+ Recovery rating 2 $1.775 billion term loan A BB+ Recovery rating 2 US SHALE SOLUTIONS: S&P Assigns 'CCC+' Corp. Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'CCC+' corporate credit rating to Houston-based US Shale Solutions Inc. The outlook is developing. At the same time, S&P assigned its 'B-' issue rating (one notch above the corporate credit rating) to the company's proposed $210 million senior secured notes due 2017. The recovery rating is '2', indicating S&P's expectation of substantial (70% to 90%) recovery if a payment default occurs. This assumes no first-lien ABL facility is in place. S&P expects that the company will use proceeds from the proposed notes, along with $83 million of rollover equity to fund the acquisition of four companies to be rolled up into US Shale. "During the next 12 months, we could either raise or lower the rating depending on US Shale's ability to successfully operate and begin to integrate the four acquired companies, as well as the level of liquidity that the company is able to maintain," said Standard & Poor's credit analyst Stephen Scovotti. A positive rating action could be considered if the company successfully operates and begins the integration of the four acquired companies, while maintaining sufficient liquidity, including putting an ABL facility in place. S&P could lower ratings if liquidity further deteriorates. Such an event could occur if the company has difficulty operating and integrating the four acquired companies and the company is unable to put a sufficient ABL facility in place. USEC INC: Files Form T-3; To Issue 2019/2024 PIK Notes Under Plan ----------------------------------------------------------------- USEC Inc. has filed with the Securities and Exchange Commission a FORM T-3 "FOR APPLICATION FOR QUALIFICATION OF INDENTURE UNDER THE TRUST INDENTURE ACT OF 1939". USEC intends to offer its 8.0% PIK Toggle Notes due 2019/2024 pursuant to its Plan of Reorganization and Disclosure Statement. USEC anticipates issuing on the Effective Date $240,380,000 in New Notes. Under the Plan, USEC expects to issue additional New Notes pursuant to PIK Payments during the time the New Notes are outstanding. The New Notes will be offered to (i) the holders of USEC's 3% Convertible Senior Notes due 2014 and (ii) the two holders of USEC's outstanding Series B-1 12.75% convertible preferred stock and outstanding warrants to purchase shares of the Old Preferred Stock, in each case in partial satisfaction of such claims and interests. The New Notes and any additional New Notes issued as PIK Payments are to be issued pursuant to the indenture to be qualified under the Form T-3, among USEC as Issuer, United States Enrichment Corporation as the Guarantor and CSC Trust Company of Delaware, as trustee and collateral agent. USEC's obligations under the New Indenture will be guaranteed on a limited basis by the Guarantor. A copy of the Form T-3 is available at http://is.gd/Bs3fN2 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. VERITEQ CORP: Issues Convertible Promissory Notes ------------------------------------------------- VeriTeQ Corporation entered into a securities purchase agreement, dated July 31, 2014, and effective Aug. 6, 2014, with an accredited investor. Pursuant to the terms of the SPA, the Company issued and sold to the Buyer two 8% convertible promissory notes in the amount of $75,000 each. The first note for $75,000 was paid for by the Buyer on Aug. 6, 2014, in cash, less transaction expenses. The second note was paid for by the issuance of an offsetting $75,000 secured note issued to the Company by the Buyer, which is to be paid in cash to the Company within 8 months. The 8% Note matures on July 31, 2015. It may be converted in whole or in part into the Company's common stock, at the option of the holder, at any time following 180 days after issuance and until the maturity date. The conversion price will be 61% of the average of the three lowest closing bid prices of the Company's common stock for the fifteen prior trading days, including the day upon which the conversion notice is received by the Company. During the first 180 days that 8% Note is in effect, the Company may redeem the note by paying to the holder an amount equal to 150% of the face amount plus any accrued interest. The 8% Note may not be prepaid after the 180th day. Interest on any unpaid principal balance of 8% Note will be paid at the rate of 8% per annum. Interest on the 8% Note will be paid by the Company in shares of its common stock, referred to as Interest Shares. The holder may, at any time, send in a notice of conversion to the Company for Interest Shares based on the formula provided above for principal conversions. The 8% Second Note matures on July 31, 2015. The holder of the 8% Second Note is entitled, at its option, after the expiration of the requisite Rule 144 holding period and after full cash payment of the 8% Buyer Note, to convert all or any amount of the principal face amount of the 8% Second Note then outstanding into shares of the Company's common stock without restrictive legend of any nature, at a conversion price for each share of the Company's common stock equal to 61% of the average of the three lowest closing bid prices of the Company's common stock for the fifteen prior trading days, including the day upon which the conversion notice is received by the Company. The 8% Second Note may not be prepaid, except in certain circumstances described therein. Interest on any unpaid principal balance of the 8% Second Note shall be paid by the Company in Interest Shares. The holder may, at any time, send in a notice of conversion to the Company for Interest Shares based on the formula provided above for principal conversions. The 8% Note and the 8% Second Note contain certain covenants and restrictions, including, among others, that, for so long as the notes are outstanding the Company will not dispose of certain assets and will maintain its listing on the over-the-counter market. Events of default under the note include, among others, failure to pay principal or interest on the note or comply with certain covenants under the note. The Company also entered into a securities purchase agreement, effective Aug. 4, 2014, with another accredited investor. Pursuant to the terms of the Purchase Agreement, the Company issued and sold to the Lender two 12% convertible promissory notes in the amount of $50,000 each. The first note for $50,000 was paid for by the Lender on Aug. 4, 2014, in cash, less transaction expenses. The second note was initially paid for by the issuance of an offsetting $50,000 secured note issued to the Company by the Lender, which is to be paid in cash to the Company within 8 months. The 8% Note matures on Aug. 4, 2015. It may be converted in whole or in part into the Company's common stock, at the option of the holder, at any time following 180 days after issuance and until the maturity date. The conversion price will be 61% of the average of the three lowest closing bid prices of the Company?s common stock for the twenty prior trading days, including the day upon which the conversion notice is received by the Company. During the first 180 days the 12% Note is in effect, the Company may redeem the note by paying to the holder an amount equal to 150% of the face amount plus any accrued interest. The 12% Note may not be prepaid after the 180th day. Interest on any unpaid principal balance of 12% Note will be paid at the rate of 12% per annum. Interest on the 12% Note will be paid by the Company in shares of its common stock, referred to as Interest Shares. The holder may, at any time, send in a notice of conversion to the Company for Interest Shares based on the formula provided above for principal conversions. The 12% Second Note matures on August 4, 2015. The holder of the 12% Second Note is entitled, at its option, after the expiration of the requisite Rule 144 holding period and after full cash payment of the 12% Lender Note, to convert all or any amount of the principal face amount of the 12% Second Note then outstanding into shares of the Company's common stock without restrictive legend of any nature, at a conversion price for each share of the Company's common stock equal to 61% of the average of the three lowest closing bid prices of the Company's common stock for the twenty prior trading days, including the day upon which the conversion notice is received by the Company. The 12% Second Note may not be prepaid, except in certain circumstances described therein. Interest on any unpaid principal balance of the 12% Second Note shall be paid by the Company in Interest Shares. The holder may, at any time, send in a notice of conversion to the Company for Interest Shares based on the formula provided above for principal conversions. A full-text copy of the Form 8-K is available for free at: http://is.gd/T5bONg About VeriTeQ VeriTeQ (formerly known as Digital Angel Corporation) develops innovative, proprietary RFID technologies for implantable medical device identification, and dosimeter technologies for use in radiation therapy treatment. VeriTeQ offers the world's first FDA cleared RFID microchip technology that can be used to identify implantable medical devices, in vivo, on demand, at the point of care. VeriTeQ's dosimeters provide patient safety mechanisms while measuring and recording the dose of radiation delivered to a patient in real time. For more information on VeriTeQ, please visit www.veriteqcorp.com . Veriteq Corporation reported a net loss of $15.07 million on $18,000 of sales for the year ended Dec. 31, 2013, as compared with a net loss of $1.60 million on $0 of sales for the year ended Dec. 31, 2012. As of March 31, 2014, the Company had $7.97 million in total assets, $15.19 million in total liabilities and a $7.21 million total stockholders' deficit. EisnerAmper LLP, in New York, New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred recurring net losses, and at Dec. 31, 2013, had negative working capital and a stockholders' deficit. These events and conditions raise substantial doubt about the Company's ability to continue as a going concern. VERTIS HOLDINGS: Cash Collateral Use Approved --------------------------------------------- BankruptcyData reported that the U.S. Bankruptcy Court issued a third supplemental order authorizing Vertis Holdings to continue using cash collateral and granting continued adequate protection to the pre-petition term loan lenders. The order, according to BData, states, "The wind-down reserve amount of 'not less than $500,000 through July 31, 2014' set forth in Paragraph 1 of the second supplement is hereby deleted and replaced with (i) such amounts as may be required to pay all remaining fees, costs and expenses incident to the administration of the Cases accrued or incurred through July 31, 2014 including in accordance with the 4-week budget and (ii) an amount equal to $600,000 through the date on which cases are either dismissed or converted to cases under chapter 7 of the Bankruptcy Code (the 'Case Disposition Date') comprised of (a) $300,000 on account of professional fees and expenses incident to the cases that accrue or are incurred on or before July 31, 2014 (the 'Professional Fees Carve-Out') and (b) $300,000 set aside to fund the fees, costs and expenses incident to the administration of the cases accrued or incurred on or after August 1, 2014, including the payment of professional's fees and expenses that accrue or are incurred on or after August 1, 2014 (the 'Chapter 11 Amount')." About Vertis Holdings Vertis Holdings Inc. -- http://www.thefuturevertis.com/-- provides advertising services in a variety of print media, including newspaper inserts such as magazines and supplements. Vertis and its affiliates (Bankr. D. Del. Lead Case No. 12-12821), returned to Chapter 11 bankruptcy on Oct. 10, 2012, this time to sell the business to Quad/Graphics, Inc., for $258.5 million, subject to higher and better offers in an auction. As of Aug. 31, 2012, the Debtors' unaudited consolidated financial statements reflected assets of approximately $837.8 million and liabilities of approximately $814.0 million. Bankruptcy Judge Christopher Sontchi presides over the 2012 case. Vertis is advised by Perella Weinberg Partners, Alvarez & Marsal, and Cadwalader, Wickersham & Taft LLP. Quad/Graphics is advised by Blackstone Advisory Partners, Arnold & Porter LLP and Foley & Lardner LLP, special counsel for antitrust advice. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Quad/Graphics is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts/circulars, direct mail, books, directories, and commercial and specialty products, including in-store signage. Headquartered in Sussex, Wis. (just west of Milwaukee), the Company has approximately 22,000 full-time equivalent employees working from more than 50 print-production facilities as well as other support locations throughout North America, Latin America and Europe. Vertis first filed for bankruptcy (Bankr. D. Del. Case No. 08- 11460) on July 15, 2008, to complete a merger with American Color Graphics. ACG also commenced separate bankruptcy proceedings. In August 2008, Vertis emerged from bankruptcy, completing the merger. Vertis against filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 10-16170) on Nov. 17, 2010. The Debtor estimated its assets and debts of more than $1 billion. Affiliates also filed separate Chapter 11 petitions -- American Color Graphics, Inc. (Bankr. S.D.N.Y. Case No. 10-16169), Vertis Holdings, Inc. (Bankr. S.D.N.Y. Case No. 10-16170), Vertis, Inc. (Bankr. S.D.N.Y. Case No. 10-16171), ACG Holdings, Inc. (Bankr. S.D.N.Y. Case No. 10- 16172), Webcraft, LLC (Bankr. S.D.N.Y. Case No. 10-16173), and Webcraft Chemicals, LLC (Bankr. S.D.N.Y. Case No. 10-16174). The bankruptcy court approved the prepackaged Chapter 11 plan on Dec. 16, 2010, and Vertis consummated the plan on Dec. 21. The plan reduced Vertis' debt by more than $700 million or 60%. GE Capital Corporation, which serves as DIP Agent and Prepetition Agent, is represented in the 2012 case by lawyers at Winston & Strawn LLP. Morgan Stanley Senior Funding Inc., the agent under the prepetition term loan, and as term loan collateral agent, is represented by lawyers at White & Case LLP, and Milbank Tweed Hadley & McCloy LLP. On Jan. 16, 2013, Quad/Graphics completed the acquisition of Vertis Holdings for a net purchase price of $170 million. This assumes the purchase price of $267 million less the payment of $97 million for current assets that are in excess of normalized working capital requirements. VEYANCE TECHNOLOGIES: S&P Retains 'B' CCR on CreditWatch Positive ----------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on Fairlawn, Ohio-based engineered rubber products manufacturer Veyance Technologies Inc., including the 'B' corporate credit rating, remain on CreditWatch with positive implications, where S&P initially placed them on Feb. 11, 2014. "The ratings remain on CreditWatch with positive implications because the proposed acquisition of Veyance Technologies by higher-rated Continental AG has yet to be completed, pending regulatory approval," said Standard & Poor's credit analyst Svetlana Olsha. S&P plans to resolve the CreditWatch placement after the transaction closes. At that time, S&P could raise or withdraw the ratings on the company. WALTER ENERGY: Widens Q2 Loss to $151MM, May File for Bankruptcy ---------------------------------------------------------------- Walter Energy, Inc., disclosed in its quarterly report for the period ended June 30, 2014, that it may not be able to refinance any of its indebtedness on commercially reasonable terms or at all. If the Company's operations do not generate sufficient cash flows, and additional borrowings or refinancing are not available to it, the Company said it may not have sufficient cash to enable it to meet all of its obligations. "If we cannot make scheduled payments on our debt or are not in compliance with our covenants and are not able to amend those covenants, we will be in default and holders of the Notes could declare all outstanding principal and interest to be due and payable, the lenders under the Credit Agreement could terminate their commitments to loan money, the lenders could foreclose against the assets securing their borrowings and we could be forced into bankruptcy or liquidation. If we are not able to generate sufficient cash flow from operations, we may need to seek an amendment to our Credit Agreement to prevent us from potentially being in breach of our covenants," the Company stated in the Form 10-Q. The Company 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 last year. For the six months ended June 30, 2014, the Company reported 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 during the prior 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 total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/wsvoEX 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 94.20 cents-on- the-dollar during the week ended Friday, Aug. 8, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.63 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. WARNER MUSIC: Incurs $184 Million Net Loss in Third Quarter ----------------------------------------------------------- Warner Music Group Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $184 million on $788 million of revenues for the three months ended June 30, 2014, as compared with a net loss of $62 million on $663 million of revenues for the same period last year. For the nine months ended June 30, 2014, the Company reported a net loss of $279 million on $2.25 billion of revenues as compared with a net loss of $137 million on $2.10 billion of revenues for the same period last year. As of June 30, 2014, the Company had $6.11 billion in total assets, $5.65 billion in total liabilities and $460 million in total equity. "A stronger release schedule, combined with sustained investment in exceptional artistic talent and first-class execution by our operators, delivered robust results this quarter," said Stephen Cooper, Warner Music Group's CEO. "We are especially pleased to see our strategic moves pay off, with the acquisition of Parlophone Label Group (PLG) being a key contributor to this quarter's success. We expect our momentum to continue through the remainder of the fiscal year, due to several exciting artist releases in the coming months." "We are pleased with our financial performance with key highlights including solid revenue growth, improvement in Adjusted OIBDA and an increase in our cash balance as compared to the prior-year quarter," added Brian Roberts, Warner Music Group's executive vice president and CFO. "Excluding the non-recurring costs associated with the PLG acquisition and integration, our cash flow from operations was strong and we remain committed to delivering solid free cash flow in the quarters to come." A full-text copy of the Form 10-Q is available for free at: http://is.gd/HWKTKR About Warner Music Group Based in New York, Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- was formed by a private equity consortium of investors on Nov. 21, 2003. The Company is the direct parent of WMG Holdings Corp., which is the direct parent of WMG Acquisition Corp. WMG Acquisition Corp. is one of the world's major music-based content companies and the successor to substantially all of the interests of the recorded music and music publishing businesses of Time Warner Inc. The Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing. The Company's Recorded Music business primarily consists of the discovery and development of artists and the related marketing, distribution and licensing of recorded music produced by such artists. The Company's Music Publishing operations include Warner/Chappell, its global Music Publishing company, headquartered in New York with operations in over 50 countries through various subsidiaries, affiliates and non-affiliated licensees. In May 2011, Warner Music Group Corp. and Access Industries, the U.S.-based industrial group, announced the execution of a definitive merger agreement under which Access Industries will acquire WMG in an all-cash transaction valued at $3.3 billion. The purchase includes WMG's entire recorded music and music publishing businesses. On July 20, 2011, the Company notified the New York Stock Exchange, Inc., of its intent to remove the Company's common stock from listing on the NYSE and requested that the NYSE file with the SEC an application on Form 25 to report the delisting of the Company's common stock from the NYSE. On July 21, 2011, in accordance with the Company's request, the NYSE filed the Form 25 with the SEC in order to provide notification of that delisting and to effect the deregistration of the Company's common stock under Section 12(b) of the Securities Exchange Act of 1934, as amended. On August 2, 2011, the Company filed a Form 15 with the SEC in order to provide notification of a suspension of its duty to file reports under Section 15(d) of the Exchange Act. The Company continues to file reports with the SEC pursuant to the Exchange Act in accordance with certain covenants contained in the instruments governing the Company's outstanding indebtedness. Warner Music reported a net loss attributable to the Company $198 million on $2.87 billion of revenues for the fiscal year ended Sept. 30, 2013, as compared with a net loss attributable to the Company of $112 million on $2.78 billion of revenues for the fiscal year ended Sept. 30, 2012. * * * As reported by the TCR on March 28, 2014, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on recorded music and music publishing company Warner Music Group Corp. (WMG). S&P's rating and negative outlook reflect continued uncertainty surrounding industry wide revenue and profitability trends affecting WMG over the intermediate term, despite recent signs of stabilization in the industry. WASHINGTON MUTUAL: Chase Beats Rocker Rundgren's Mortgage Suit -------------------------------------------------------------- Law360 reported that the Ninth Circuit tossed '70s rocker Todd Rundgren's suit contending JPMorgan Chase Bank NA is liable for defunct Washington Mutual Bank FA's allegedly fraudulent handling of his $3 million mortgage, saying the musician failed to exhaust his administrative remedies before suing. According to the report, Rundgren, along with his wife, Michele Rundgren, had sued the bank in Hawaii federal court to block foreclosure of their Hawaii residence, alleging WaMu agents created a false loan application for the couple. The case is Todd Rundgren, et al v. JPMorgan Chase Bank, Case No. 12-15368 (9th Cir.). About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- was the holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. Washington Mutual Bank was taken over on September 25, 2008, by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns 100% of the equity in WMI Investment. WAVE SYSTEMS: Reports Q2 Net Revenues of $4.4 Million ----------------------------------------------------- Wave Systems Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended June 30, 2014. "I am never satisfied with reporting a loss or a quarterly drop in sales, however these results for Q2 do not derail Wave's previously discussed plan or its timing to turn around this company's financial performance. The changes that we have made are still on track to begin having a positive impact in the coming quarters," said Wave CEO Bill Solms. "As I have stated over the past several months, our objectives won't be accomplished in a single quarter or two. We expect greater traction from our new sales strategy and new product launches. To accomplish this, we have overhauled the bulk of our sales team and have attracted an impressive group of experienced and driven industry veterans who understand what needs to be done to achieve our sales targets. Such changes are time consuming and disruptive in the short term, but are critical in building the groundwork to deliver the stronger, long term results." Wave disclosed a net loss of $3.79 million on $4.43 million of total net revenues for the three months ended June 30, 2014, as compared with a net loss of $3.49 million on $6.74 million of total net revenues for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss of $7.08 million on $9.77 million of total net revenues as compared with a net loss of $13.70 million on $12.53 million of total net revenues for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $15.36 million in total assets, $15.91 million in total liabilities and a $541,220 total stockholders' deficit. "Wave may be required to sell shares of common stock, preferred stock, obtain debt financing or engage in a combination of these financing alternatives, to raise additional capital to continue to fund its operations for the twelve-months ending June 30, 2015. If Wave is not successful in executing its business plan, it will be required to sell additional shares of common stock, preferred stock, obtain debt financing or engage in a combination of these financing alternatives or it could be forced to reduce expenses which may significantly impede its ability to meet its sales, marketing and development objectives, or cause it to cease operations or merge with another company. No assurance can be provided that any of these initiatives will be successful. Due to our current cash position, our forecasted capital needs over the next twelve months and beyond, uncertainty as to whether we will achieve our sales forecast for our products and services and the fact that we may require additional financing, substantial doubt exists with respect to our ability to continue as a going concern," the Company stated in the Form 10-Q Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/kxazNT About Wave Systems Lee, Massachusetts-based Wave Systems Corp. (NASDAQ: WAVX) -- http://www.wave.com/-- develops, produces and markets products for hardware-based digital security, including security applications and services that are complementary to and work with the specifications of the Trusted Computing Group, an industry standards organization comprised of computer and device manufacturers, software vendors and other computing products manufacturers. Wave Systems reported a net loss of $20.32 million in 2013, a net loss of $33.96 million in 2012 and a net loss of $10.79 million in 2011. KPMG 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 Wave Systems Corp. has suffered recurring losses from operations and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. WESTMORELAND COAL: Announces Monetization of Port Agreement ----------------------------------------------------------- Westmoreland Coal Company, through its Coal Valley Resources, Inc., subsidiary, has entered into several agreements that will result in all of its Coal Valley Mine export tonnage being shipped through Ridley Terminals located in Prince Rupert, British Columbia, Canada, beginning January 2015. CVRI voluntarily entered into a Termination Agreement with Westshore Terminals, located in Roberts Bank, British Columbia, Canada, to terminate its throughput capacity at Westshore effective as of Dec. 31, 2014. Under a separate, but related agreement, Cloud Peak Energy Inc. paid $37 million to CVRI in order to obtain CVRI's capacity at the fully utilized Westshore Terminals. "This is a 'win-win' series of agreements," noted Keith E. Alessi, Westmoreland's chief executive officer. "We have entered into a new supply chain collaboration with the CN railroad and Ridley Terminals. The rail line to Ridley is better suited to our needs. In addition, Ridley Terminals has the capacity we need to allow us to grow our business, and our customers' business. The monetization is yet an added benefit. We look forward to working with our partners at CN and Ridley." A full-text copy of the Agreement between Cloud Peak Energy Logistics LLC and Coal Valley Resources, Inc. dated August 7, 2014, is available for free at http://is.gd/GzbrcQ About Westmoreland Coal Colorado Springs, Colo.-based Westmoreland Coal Company (NYSE AMEX: WLB) -- http://www.westmoreland.com/-- is the oldest independent coal company in the United States. The Company's coal operations include coal mining in the Powder River Basin in Montana and lignite mining operations in Montana, North Dakota and Texas. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. Westmoreland Coal incurred a net loss applicable to common shareholders of $6.05 million in 2013, a net loss applicable to common shareholders of $8.58 million in 2012 and a net loss applicable to common shareholders of $34.46 million in 2011. As of Dec. 31, 2013, the Company had $946.68 million in total assets, $1.13 billion in total liabilities and a $187.87 million total deficit. * * * As reported by the TCR on Nov. 6, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Englewood, Co.-based Westmoreland Coal Co. (WLB). to 'B-' from 'CCC+'. "The upgrade reflects our view that WLB is less vulnerable to default after successfully negotiating less restrictive covenant requirements for an unrated $110 million term loan due 2018," said credit analyst Gayle Bowerman. "Our assessment of WLB's business risk profile as 'vulnerable' and financial risk profile as 'highly leveraged' are unchanged. We also revised our liquidity score to 'adequate' based on the covenant relief and additional liquidity provided under the company's new $20 million asset-based loan (ABL) facility from 'less than adequate'." Westmoreland Coal carries a Caa1 corporate family rating from Moody's Investors Service. XZERES CORP: KLJ & Associates Is New Accountant ----------------------------------------------- Silberstein Ungar, PLLC, notified Xzeres Corp. that its client base has been acquired by KLJ & Associates, LLP . As a result of the transaction, the Former Accountant effectively resigned as the Company's independent registered public accounting firm and KLJ & Associates, as the successor following the transaction, became the Company's independent registered public accounting firm. The engagement of the New Accountant was approved by the Company's Board of Directors on July 25, 2014. The Former Accountant's audit reports on the financial statements of the Company for the fiscal years ended Feb. 28, 2014, and 2013 contained no adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles, except that the audit reports on the financial statements of the Company for the fiscal years ended Feb. 28, 2014, and 2013 contained an uncertainty about the Company's ability to continue as a going concern. The Company said that during the fiscal years ended Feb. 28, 2014, and 2013, and through the interim period ended May 31, 2014, there were no "disagreements" with the Former Accountant on any matter. During the fiscal years ended Feb. 28, 2014 and 2013, and through the interim period ended May 31, 2014, there were the following "reportable events" (as such term is defined in Item 304 of Regulation S-K). As disclosed in Part I, Item 4 of the Company's Form 10-Q for the quarterly period ended May 31, 2014, the Company's management determined that the Company's internal controls over financial reporting were not effective as of the end of such period due to the existence of material weaknesses related to the following: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines. These material weaknesses have not been remediated as of Aug. 6, 2014. Prior to retaining the New Accountant, the Company said it did not consult with the New Accountant regarding either: (i) the application of accounting principles to a specified transaction, either contemplated or proposed, or the type of audit opinion that might be rendered on the Company's financial statements; or (ii) any matter that was the subject of a "disagreement" or a "reportable event" (as those terms are defined in Item 304 of Regulation S-K). About XZERES Corp. Headquartered in Wilsonville, Oregon, XZERES Corp. designs, develops, and markets distributed generation, wind power systems for the small wind (2.5kW-100kW) market as well as power management solutions. XZERES reported a net loss of $9.49 million for the year ended Feb. 28, 2014, as compared with a net loss of $7.59 million for the year ended Feb. 28, 2013. The Company's balance sheet at May 31, 2014, showed $6.80 million in total assets, $14.43 million in total liabilities and a $7.63 million total stockholders' deficit. Silberstein Ungar, PLLC, in Bingham Farms, Michigan, issued a "going concern" qualification on the consolidated financial statements for the year ended Feb. 28, 2014. The independent auditors noted that the Company has incurred losses from operations, has negative working capital, and is in need of additional capital to grow its operations so that it can become profitable. These factors raise substantial doubt about the Company's ability to continue as a going concern. YRC WORLDWIDE: Marc Lasry Reports 23.3% Equity Stake ---------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Marc Lasry and his affiliates disclosed that as of Aug. 6, 2014, they beneficially owned 7,273,125 shares of common stock of YRC Worldwide Inc. representing 23.3 percent of the shares outstanding. The reporting persons previously held 8,205,062 common shares at March 14, 2014. A full-text copy of the regulatory filing is available at http://is.gd/KVrPpn About YRC Worldwide Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ: YRCW) -- http://www.yrcw.com/-- is a holding company that offers its customers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. The Company incurred a net loss of $83.6 million in 2013 following a net loss of $136.5 million in 2012. As of Dec. 31, 2013, the Company had $2.06 billion in total assets, $2.66 billion in total liabilities and a $597.4 million total shareholders' deficit. * * * As reported by the TCR on Feb. 18, 2014, Moody's Investors Service had upgraded the Corporate Family Rating for YRC Worldwide Inc. ("YRCW") from Caa3 to B3, following the successful closing of its refinancing transactions. In the Jan. 31, 2014, edition of the TCR, Standard & Poor's Ratings Services said that it raised its ratings on Overland Park, Kansas-based less-than-truckload (LTL) trucker YRC Worldwide Inc. (YRCW), including the corporate credit rating to 'CCC+' from 'CCC', and removed them from CreditWatch negative, where they were placed on Jan. 10, 2014. "The upgrades reflect YRCW's improved liquidity position and minimal debt maturities as a result of its proposed refinancing," said Standard & Poor's credit analyst Anita Ogbara. WORLDCOM INC: IRS Says High Court Should Skip 'Obsolete' Case ------------------------------------------------------------- Law360 reported that the Internal Revenue Service has urged the U.S. Supreme Court to pass on reviewing a decision holding now- defunct WorldCom Inc. liable for $26 million in excise taxes and interest on a telecom service for dial-up modems, arguing that the technology is now obsolete. According to the report, the question of whether WorldCom, which later became MCI Inc. and is now a unit controlled by Verizon Communications Inc., should have paid taxes on the service as a telephone provider even though it didn't enable phone calls isn't important anymore, the IRS has argued in a brief filed July 24. The case is WorldCom Inc. v. Internal Revenue Service, case number 13-1269, in the U.S. Supreme Court. WorldCom, Inc., a Clinton, Mississippi-based global communications company, filed for chapter 11 protection (Bankr. S.D.N.Y. Case No. 02-13532) on July 21, 2002. On March 31, 2002, WorldCom disclosed $103,803,000,000 in assets and $45,897,000,000 in debts. The Debtors were represented by Weil, Gotshal & Manges LLP. The Bankruptcy Court confirmed WorldCom's Plan on Oct. 31, 2003, and on April 20, 2004, the Company formally emerged from Chapter 11 protection as MCI, Inc. On Jan. 6, 2006, MCI merged with Verizon Communications, Inc. MCI is now known as Verizon Business, a unit of Verizon Communications. ZOGENIX INC: Files Form 10-Q, Posts $62.8MM Net Income in Q2 ------------------------------------------------------------ Zogenix, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $62.86 million on $9.16 million of total revenue for the three months ended June 30, 2014, compared to a net loss of $13.33 million on $8.94 million of total revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income of $41.93 million on $16.83 million of total revenue as compared with a net loss of $34.38 million on $15.92 million of total revenue for the same period last year. The Company's balance sheet at June 30, 2014, the Company had $133.29 million in total assets, $64.98 million in total liabilities and $68.31 million in total stockholders' equity. "The Company has incurred significant net losses since inception and has relied on its ability to fund its operations through equity financings, debt financings, revenues from the sale of product and proceeds from business collaborations. As the Company continues to incur losses, successful transition to profitability is dependent upon achieving a level of revenues adequate to support the Company's cost structure. This may not occur and, unless and until it does, the Company will continue to need to raise additional cash. These conditions raise substantial doubt about the Company's ability to continue as a going concern," the Company stated in the Quarterly Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/eGTkGi About Zogenix Inc. Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. Zogenix reported a net loss of $80.85 million in 2013, as compared with a net loss of $47.38 million in 2012. Ernst & Young LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's recurring losses from operations and lack of sufficient working capital raise substantial doubt about its ability to continue as a going concern. ZOGENIX INC: To Issue 2.7 Million Common Shares Under Plan ---------------------------------------------------------- Zogenix, Inc., filed with the U.S. Securities and Exchange Commission a Form S-8 registration statement to register 2,700,000 shares of common stock issuable under the Company's Employment Inducement Equity Incentive Award Plan for a proposed maximum aggregate offering price of $8.7 million. A full-text copy of the prospectus is available for free at: http://is.gd/0guWFb About Zogenix Inc. Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. Zogenix reported a net loss of $80.85 million in 2013, as compared with a net loss of $47.38 million in 2012. The Company's balance sheet at June 30, 2014, showed $133.29 million in total assets, $64.98 million in total liabilities and $68.31 million in total stockholders' equity. Ernst & Young LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's recurring losses from operations and lack of sufficient working capital raise substantial doubt about its ability to continue as a going concern. * Barclays Seeks Dismissal of New York Dark Pool Lawsuit -------------------------------------------------------- Christie Smythe and Chris Dolmetsch, writing for Bloomberg News, reported that Barclays Plc asked a judge to throw out New York Attorney General Eric Schneiderman's lawsuit that accused the bank of lying to customers and hiding the role of high-frequency traders to boost its dark pool profile. According to the report, the London-based bank said the lawsuit fails to show any investors were harmed and is based on "clear and substantial factual errors," according to a filing in Manhattan state court. The attorney general's office also took New York's securities law -- the Martin Act -- too far in bringing the lawsuit, the bank alleged, the report related. The case is New York v. Barclays Capital (JNK), 451391-2014, Supreme Court of the State of New York, County of New York. * BofA Ordered to Pay $1.27 Billion Over Mortgage Fraud ------------------------------------------------------- Christina Rexrode and Julie Steinberg, writing for The Wall Street Journal, reported that state and federal officials have collected big penalties from the top ranks of Bank of America Corp. and its Countrywide Financial Corp. mortgage unit for their roles in the financial crisis. According to the report, a federal judge added a midlevel mortgage manager, Rebecca Mairone, to the list of those punished. The Journal said that in addition to the $1.27 billion penalty levied on the Charlotte, N.C., bank, Judge Jed Rakoff ordered Ms. Mairone to pay $1 million. * BofA Deal Hung Up Over Penalties Tied to Countrywide, Merrill --------------------------------------------------------------- Christina Rexrode and Andrew Grossman, writing for The Wall Street Journal, reported that negotiations between Bank of America Corp. and the Justice Department have hit a snag over whether the firm should pay a cash penalty for the dealings of Countrywide Financial Corp. and Merrill Lynch & Co., according to people familiar with the talks. Bank of America has offered $13 billion to end the government's mortgage-securities probe, including a combination of fines and consumer assistance, which could include credit for measures such as writing down the values of mortgages for struggling homeowners, but the Justice Department is demanding billions more -- and wants a bigger chunk in fines, these people said. * Dollar General Said to Explore Family Dollar Bid -------------------------------------------------- David Welch, Matthew Campbell and Matt Townsend, writing for Bloomberg News, reported that Dollar General Corp. is weighing a bid for Family Dollar Stores Inc. that would challenge Dollar Tree Inc.'s $8.5 billion takeover of the discount retailer, people with knowledge of the matter said. According to the report, Dollar General is working with an adviser to evaluate its options and knows that banks are willing to finance a counterbid, one of the people said, asking not to be identified discussing private information. Selina Wang, Beth Jinks and Cotten Timberlake, writing for Bloomberg News, previously reported that Dollar Tree has agreed to buy Family Dollar for about $8.5 billion, with Dollar Tree paying $74.50 a share in cash and stock. Including debt, the deal has a value of about $9.2 billion, the Bloomberg report said. Bloomberg related that while Dollar General had earlier passed on the chance to bid for Family Dollar, the company is re-evaluating its options out of concern that the smaller retailer may soon be out of its reach for good, two people said. * MoneyPak Opens Path to Fraud Schemes -------------------------------------- Matthew Goldstein, writing for The New York Times' DealBook, reported that federal authorities are sounding alarms about a wide range of fraudulent schemes involving a popular prepaid money card product. According to the report, abuses relating to the card, called MoneyPak, are mounting as the market in prepaid cards is increasingly finding favor with Americans who don't have access to a traditional bank account or credit card. * Royal Bank of Scotland To Revamp Restructuring Unit Amid Probe ---------------------------------------------------------------- Chad Bray, writing for The New York Times' DealBook, reported that the Royal Bank of Scotland is revamping its controversial unit that assists businesses facing serious financial difficulties, according to a person briefed on the matter. The unit, the Global Restructuring Group, will be disbanded and replaced by a new restructuring group to be headed by Laura Barlow, who joined the bank in 2009, the DealBook said, citing the person, who wasn?t authorized to discuss the matter publicly. A report by a British businessman and government adviser, Lawrence Tomlinson, claimed the unit artificially forced some businesses facing financial troubles into default so that the R.B.S. unit could profit, the DealBook related. * UAW Sued for Treating Plant Workers Unequally ----------------------------------------------- Law360 reported that United Auto Workers was hit with a suit in a Michigan federal court by a group of temporary employees Michigan auto plants who accused the union of forcing them into dodgy contracts and accepting union dues from the workers without proper representation. According to the report, nearly 200 workers of Automotive Component Holdings accuse the UAW of failing to represent them properly even as they paid union dues, in addition to subjecting them to pressure to blindly sign and vote for contracts for which they lacked the details. The case is Barker et al v. International United Auto Workers, Case No. 2:14-cv-12997 (E.D. Mic.). * Judge Threatens Argentina With Contempt ----------------------------------------- Alexandra Stevenson, writing for The New York Times' DealBook, reported that U.S. District Judge Thomas P. Griesa in Manhattan told Argentina to cease making "false and misleading" statements that it did not default on July 30. He added that if Argentina continued to defy his orders, he would have to consider it in contempt of court, the report related. * Banks Face Hit from CFPB on $30 Billion in Overdraft Fees ----------------------------------------------------------- Carter Dougherty, writing for Bloomberg News, reported that the $30 billion banks collect in overdraft fees each year may shrink as the U.S. Consumer Financial Protection Bureau imposes rules aimed at shielding customers from harm. According to the report, the agency, which issued a study on the fees on July 31, is also weighing regulations to improve consumer awareness of overdraft costs and restrict how banks can debit transactions and impose fees, according to a senior agency official. * CFTC Says Flexibility Vital to Oversee Cross-Border Swaps ----------------------------------------------------------- Andrew Zajac and Silla Brush, writing for Bloomberg News, reported that U.S. regulators need flexibility in overseeing cross-border swaps, a lawyer for the Commodity Futures Trading Commission told a federal judge as he defended the agency's reliance on guidance rather than formal rules in a lawsuit brought by Wall Street's largest lobbying groups. According to the report, Congress directed the CFTC to regulate overseas trading of swaps to prevent a catastrophic market failure like the one involving American International Group Inc. in 2008, Robert Schwartz, a lawyer for the agency, said at a hearing in federal court in Washington. The case is SIFMA v. U.S. CFTC, 13-cv-1916, U.S. District Court, District of Columbia (Washington). * Ending Too Big to Fail Could Rest on Obscure Contract Language ---------------------------------------------------------------- Jesse Hamilton and Silla Brush, writing for Bloomberg News, reported that Wall Street and global financial regulators, trying to squash the lingering perception that banks remain "too big to fail," are looking to an obscure change in derivatives contracts to solve the problem. According to the report, the main industry group for the $700 trillion global swaps market is rewriting international protocols to impose a "stay" or pause designed to prevent trading partners from calling in collateral all at once when a bank nears failure. The new protocol "puts another nail in the coffin of ?too big to fail,'" Wilson Ervin, a senior adviser at Credit Suisse Group AG and the bank's chief risk officer during the 2008 crisis, said in an e-mail to Bloomberg. * Lew Can Use Tax Rule to Slow Inversions, Ex-Official Says ----------------------------------------------------------- Richard Rubin, writing for Bloomberg News, reported that the U.S. Treasury Department's former top international tax lawyer said the department should use immediate stopgap regulations to make offshore transactions known as corporate inversions less lucrative. According to the report, citing Stephen Shay, the administration can unilaterally limit inverted companies from taking interest deductions in the U.S. or from accessing their foreign cash without paying U.S. taxes. * Lloyds Bank to Pay $380MM+ Over Rate Manipulation Inquiries ------------------------------------------------------------- Chad Bray, writing for writing for The New York Times' DealBook, reported that the Lloyds Banking Group agreed to pay more than $380 million to British and United States authorities to resolve investigations into the manipulation of rates, including one used to determine fees paid by Lloyds for taxpayer-backed funding during the financial crisis. The bank will also pay an additional 7.76 million British pounds, or about $13.2 million, to compensate the Bank of England for the manipulation of another benchmark rate, which was used to determine fees paid under an emergency funding program for financial institutions during the financial crisis, the report related. * New Legislation Targets Inversions from Different Angle --------------------------------------------------------- David Gelles, writing for writing for The New York Times' DealBook, reported that lawmakers in Washington ratcheted up the pressure on companies seeking tax relief by moving overseas, introducing a bill that would withhold government contracts from companies that undertake so-called inversion deals. According to the report, the No Federal Contracts for Corporate Deserters Act - - introduced by four Democrats, Senators Richard Durbin of Illinois and Carl Levin of Michigan, and Representatives Rosa DeLauro of Connecticut and Lloyd Doggett of Texas -- seeks to discourage companies from reincorporating abroad by threatening to withhold federal dollars from the offending companies. * BOND PRICING -- For Week From Aug. 4 to 8, 2014 ------------------------------------------------- Company Ticker Coupon Bid Price Maturity Date Alion Science & ------ ------ --------- ------------- Technology Corp ALISCI 10.250 80.333 2/1/2015 Allen Systems Group Inc ALLSYS 10.500 50.500 11/15/2016 Allen Systems Group Inc ALLSYS 10.500 52.500 11/15/2016 Ark of Safety Christian Church Inc AOSCC 6.500 9.000 10/15/2015 Brookstone Co Inc BKST 13.000 38.250 10/15/2014 Brookstone Co Inc BKST 13.000 45.000 10/15/2014 Brookstone Co Inc BKST 13.000 38.125 10/15/2014 Buffalo Thunder Development Authority BUFLO 9.375 41.500 12/15/2014 Caesars Entertainment Operating Co Inc CZR 10.000 29.500 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.750 59.233 2/1/2016 Caesars Entertainment Operating Co Inc CZR 12.750 33.500 4/15/2018 Caesars Entertainment Operating Co Inc CZR 6.500 59.500 6/1/2016 Caesars Entertainment Operating Co Inc CZR 10.000 31.250 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.750 56.875 2/1/2016 Caesars Entertainment Operating Co Inc CZR 10.000 31.750 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.000 29.750 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.750 56.875 2/1/2016 Caesars Entertainment Operating Co Inc CZR 10.000 29.750 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.000 31.750 12/15/2018 Champion Enterprises Inc CHB 2.750 0.250 11/1/2037 Endeavour International Corp END 12.000 48.500 6/1/2018 Endeavour International Corp END 5.500 41.750 7/15/2016 Energy Conversion Devices Inc ENER 3.000 0.125 6/15/2013 Energy Future Competitive Holdings Co LLC TXU 8.175 1.000 1/30/2037 Energy Future Holdings Corp TXU 5.550 85.000 11/15/2014 FairPoint Communications Inc/Old FRP 13.125 1.000 4/2/2018 Global Geophysical Services Inc GGS 10.500 27.854 5/1/2017 Global Geophysical Services Inc GGS 10.500 31.250 5/1/2017 Hertz Corp/The HTZ 6.900 100.050 8/15/2014 Iglesia Templo Jerusalen ITJE 7.800 26.000 12/12/2017 Iglesia Templo Jerusalen ITJE 7.800 25.950 12/12/2019 Iglesia Templo Jerusalen ITJE 7.500 26.000 12/12/2014 James River Coal Co JRCC 7.875 12.500 4/1/2019 James River Coal Co JRCC 4.500 7.000 12/1/2015 James River Coal Co JRCC 10.000 7.000 6/1/2018 James River Coal Co JRCC 3.125 2.125 3/15/2018 James River Coal Co JRCC 10.000 11.000 6/1/2018 LBI Media Inc LBIMED 8.500 30.000 8/1/2017 Las Vegas Monorail Co LASVMC 5.500 10.000 7/15/2019 Lehman Brothers Inc LEH 7.500 13.500 8/1/2026 MF Global Holdings Ltd MF 6.250 45.500 8/8/2016 MF Global Holdings Ltd MF 1.875 44.500 2/1/2016 MModal Inc MODL 10.750 10.375 8/15/2020 MModal Inc MODL 10.750 10.125 8/15/2020 Mohegan Tribal Gaming Authority TRIBAL 7.125 99.750 8/15/2014 Momentive Performance Materials Inc MOMENT 11.500 29.250 12/1/2016 Motors Liquidation Co MTLQQ 7.200 11.250 1/15/2011 Motors Liquidation Co MTLQQ 6.750 11.250 5/1/2028 Motors Liquidation Co MTLQQ 7.375 11.250 5/23/2048 NII Capital Corp NIHD 10.000 26.000 8/15/2016 NII Capital Corp NIHD 7.625 25.250 4/1/2021 NII Capital Corp NIHD 8.875 32.055 12/15/2019 OnCure Holdings Inc RTSX 11.750 48.875 5/15/2017 Platinum Energy Solutions Inc PLATEN 14.250 74.750 3/1/2015 Platinum Energy Solutions Inc PLATEN 14.250 74.750 3/1/2015 Platinum Energy Solutions Inc PLATEN 14.250 74.750 3/1/2015 Platinum Energy Solutions Inc PLATEN 14.250 74.750 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 Savient Pharmaceuticals Inc SVNT 4.750 0.125 2/1/2018 TMST Inc THMR 8.000 13.100 5/15/2013 Terrestar Networks Inc TSTR 6.500 10.000 6/15/2014 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.000 37.250 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 13.875 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 14.500 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.500 14.250 11/1/2016 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.000 38.750 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 14.000 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.500 13.875 11/1/2016 Tunica-Biloxi Gaming Authority PAGON 9.000 60.750 11/15/2015 Western Express Inc WSTEXP 12.500 82.250 4/15/2015 Western Express Inc WSTEXP 12.500 84.750 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 ***